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Analyzing sustainable competitive advantage: strategically managing resource allocations to achieve operational competitiveness

Malek N. A., Shahzad K., Takala J., Bojnec S., Papler D., Liu Y.

Management and Production Engineering Review

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2015

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Vol. 6, No. 4

70--86

EN

In today’s dynamic business environment, a key challenge for all companies is to make adaptive adjustments to their manufacturing strategy. This study demonstrates the competitive priorities of manufacturing strategy in hydro-power case company to evaluate the level of sustainable competitive advantage and also to further analyze how business strategies are aligned with manufacturing strategies. This research is based on new holistic analytical evaluation of manufacturing strategy index, sense and respond, and sustainable competitive advantage models. These models help to describe, evaluate, and optimize resource allocation to meet the performance requirements in dynamic decision making. Furthermore, these models evaluate operational competitiveness for manufacturing strategies according to the multi-criteria priority. The results show that the adjustments of competitive priorities in manufacturing strategies by implementing the proposed holistic analytical models are helpful in strategically managing business operations. The discussion derives the most critical attributes in business operations while alignment of resource allocation with competitive priorities help to strategically focus those attributes. In conclusion, we argue that resource allocation and manufacturing strategies have become the most important capabilities in a business environment where companies focus to get a sustainable competitive advantage.

2

Validating performance based critical actions in a high tech start-up

Vuoti V. P., Takala J., Mäntylä A., Liu Y., Yang W., binti Abdul Malek N. A., Kronman P., Kreuzer A., Zafar A.

Management and Production Engineering Review

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2014

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Vol. 5, No. 1

74--86

EN

The objective of this study is to analyze a Finnish manufacturing case company’s operational competitiveness. A proposed analytical model based on analyses the corresponding angles of the strategic triangles (Prospector, Analyzer, and Defender). The model compares the angle differences between the strategy and resource triangles with opinions from different management groups of informants. It was found out that Normalized Scaled Critical Factor Index (NSCFI) model is more scientific comparing to formal ones through validation. Calculations based on the MSI questionnaire resulted in medium high values for the Prospector strategy both for past- and future orientation. S&R calculations regarding the past orientation resulted in low values for all strategy types, except P-NSCFI for Analyzer. Moreover this study covers a case, in where Balanced Critical Factor Index (BCFI) was used defining company annual strategy plan.

3

Validating knowledge and technology effects to operative sustainable competitive advantage

Takala J., Koskinen J., Liu Y., Tas M. S., Muhos M.

Management and Production Engineering Review

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2013

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Vol. 4, No. 3

45--54

EN

Purpose: This paper aims to present a fresh idea on how to model and examine the level of sustainable competitive advantage (SCA) with and without knowledge and /technology (K/T) effects in a case company’s operation by taking the manufacturing strategy’s development directions and the efficiency of resource allocation among its attributes into consideration. Design/Methodology/approach: In this paper, questionnaires are filled by two different managerial groups, company’s management team (G1) and company’s global directors (G2). The analyses based on G1, G2 and G1-G2 (mixed results) are performed and examined as well as the effect of knowledge and /technology rankings to observe the differences on how they effect on company’s operations strategy and what kind of strategy type that decision makers might follow. Besides, the effects of knowledge/technology rankings on SCA risk levels are examined on different case companies to perceive the similarities and differences with our case company. In this case study, the objectives are achieved based on several methodologies: manufacturing strategy index (MSI) [1] and sense and respond (S&R) methodology [2]. Findings: The achieved results through the model are found to be promising corresponding to the feedback from the respondents. Research limitations/implications: The model is applied only in a big sized B2B global company that produces power electronics products. Therefore, further tests need to be applied to the model in case of multiple companies from different sizes and areas to figure out the best formula in case of validation of strategic direction (MAPE, RSME or MAD). Practical implications: As a result of its wide applicability and its ease in arrangement the model has an enormous potential for strategic decision-making process and strategic analysis. Originality/Value:The model can provide a more dependable possibility of sustainable improvement to the corporate operational excellence and strategy.

4

Study on resource allocations for sustainable competitive advantage

Takala J., Shylina D., Forss T., Malmi J.

Management and Production Engineering Review

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2013

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Vol. 4, No. 3

65--75

EN

Today’s concern and problem for most of the companies is the way of surviving and prospering in current and future periods of time in the marketplace. Sustainable competitive ability can be one of the ways of adaptation to the global business and rapid environment requirements. Operational competitiveness is not easy to be sustainably improved because of unpredictable environment situations, such as continuous increasing customer needs, global competitive environment, rapid and unpredictable changes in government policy, company crisis during significant changes etc. However, it is possible to make adaptive adjustments on operations strategy level in dynamic business environment and to become competitive enough compared to the competitors. The purpose of this paper is to define and assess sustainable competitive advantage and the direction of development in housing business. It can be analysed by two core factors, i.e. Sense and Respond (S&R) methodology, Analytical Hierarchical Process (AHP) as well as Sustainable competitive advantage (SCA) method. This study also focuses on applying S&R method in order to optimize operational competitiveness as well as defining the competitive priorities of the case company. The analysis results show the critical areas in different departments of the case company, which can help the managers to make quick decisions. In addition, they reveal that during the crisis the resource allocation is continuously changing and therefore the operation strategy of the case company is not well defined as well as competitive advantages are not enough sustainable.

5

Reducing time losses in operational actions of a food production lines

Lintilä J., Takala J.

Management and Production Engineering Review

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2013

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Vol. 4, No. 2

78--88

EN

Most of the companies are interested in developing their production processes. With production process development, companies can meet their customers demands better. Tight competition is one reason that forces companies to use their production equipment as efficiently as they can. Improved production processes result in cost savings, flexibility, and in opportunities to plan companies activities more efficiently. The purpose of this research is to examine and cut operational times in food production processes. Two production lines were chosen for closer examination: spread/butter production line and quark production line. The main focus was to prevent operational time losses in these production lines. Research is divided into two separate sections: theoretical and empirical part. Theoretical part formulates guidelines and theoretical basis which is then employed in the empirical part. The theoretical part discusses Lean management philosophy, OEE indicator, SMED and questionnaire research method that comes from the sense and respond theory. In the empirical section, SMED and questionnaire method are used to examine operational activities. The focus is in finding critical characteristics from the production line’s starting-, product change-, and closing-setups. Result was that certain characteristics can be found to be critical factors. Those characteristics are connected to operational time losses. Another result is, that SMED and questionnaire research method are an effective way to examine issues with production. Both methods produced similar results in finding development targets from the production line, hence the simultaneous use of both is beneficial, as additional confirmation for the first methods findings can be obtained by securing the result with the other one.

6

Reducing time losses in operational actions of a food production lines

Lintilä J., Takala J.

Management and Production Engineering Review

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2013

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Vol. 4, No. 1

39--49

EN

Most of the companies are interested in developing their production processes. With production process development, companies can meet their customers demands better. Tight competition is one reason that forces companies to use their production equipment as efficiently as they can. Improved production processes result in cost savings, flexibility, and in opportunities to plan companies activities more efficiently. The purpose of this research is to examine and cut operational times in food production processes. Two production lines were chosen for closer examination: spread/butter production line and quark production line. The main focus was to prevent operational time losses in these production lines. Research is divided into two separate sections: theoretical and empirical part. Theoretical part formulates guidelines and theoretical basis which is then employed in the empirical part. The theoretical part discusses Lean management philosophy, OEE indicator, SMED and questionnaire research method that comes from the sense and respond theory. In the empirical section, SMED and questionnaire method are used to examine operational activities. The focus is in finding critical characteristics from the production line's starting-, product change-, and closing-setups. Result was that certain characteristics can be found to be critical factors. Those characteristics are connected to operational time losses. Another result is, that SMED and questionnaire research method are an effective way to examine issues with production. Both methods produced similar results in finding development targets from the production line, hence the simultaneous use of both is beneficial, as additional confirmation for the first methods findings can be obtained by securing the result with the other one.

7

Implementing sustainable competitive advantage to the public sector’s management system – by sense and respond methodology in facilities services unit’s preparedness

Vornanen V. J., Takala J., Liu Y.

Management and Production Engineering Review

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2013

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Vol. 4, No. 3

76--86

EN

How to ensure that the various levels of the organization are operating in accordance with a common strategy? According to the Hallberg committee’s Preparedness and comprehensive security report [1] the key challenges the public sector organization faces lies in finding new ways of operating horizontally across various levels of administration. This paper aims to develop the preparedness in the target organization by strategy’s resource-based identification for implementing sustainable competitive advantages to the public sector’s management system. The research methods used are a case study and surveys, which were connected by the analytical hierarchy process based form and two sense and respond (S&R) based forms. The longitudinal data for the surveys were collected in two phases and analyzed with the balanced critical factor index method [2] and transformational leadership indexes (TLI) with technology levels [3]. The BCFI & TLI method identifies and clarifies the unit’s development and risk factors. According to [4] during the process of sense and respond, it is important to develop an operational strategy adjustment system by utilizing critical factor evaluation. As [5] describes in her dissertation if there were clear goals defined for the quality of the (public) services the natural choice of the approach in the purpose of evaluation for accountability would be the goal-attainment evaluation. The innovative findings lay the groundwork for the decision makers to focus efforts and readjust the operations of the target organization in order to achieve operational sustainable competitive advantage (OSCA).

8

Critical attributes on supply chain strategy implementation: case study in Europe and Asia

Sillanpää I., binti Abdul Malek N. A., Takala J.

Management and Production Engineering Review

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2013

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Vol. 4, No. 4

66--75

EN

This case study research aims to compare the performance of the implementation of supply chain management (SCM) strategies within Asian and European Companies. The case study measures company’s opinions of supply chain strategy implementation through utilization of Sense and Response methodology. Critical Factor Index (CFI), Balanced Critical Factor Index (BCFI) and Scaled Critical Factor Index (SCFI) are used in this study to represent the result of comparison between European and Asian companies. From the analysis of comparison of all Sense and Response models, it can be concluded that there are differences and similarities of critical attributes that affecting supply chain strategy implementation in Asian and European companies. There are two attributes that have consistent trend for both regions; innovation and organization structure. In this research the analysis of supply chain strategy implementation was made for the needs of manufacturing industry. Suggestions for future research are multiple case studies in different industry areas in global business environment. The results provide a guideline to the company to measure the right attributes for making the right decision in a dynamic environment. It also provides good knowledge for companies to implement supply chain strategies, the main approaches to implement it and the main challenges in supply chain strategy implementation. Supply chain strategy implementation was analyzed in the European and Asian companies. This research shows that there are several developing areas for companies when implementing supply chain strategies.

9

Operational competitiveness development in turbulent business environment: a case study in Thailand fine gold jewelry export industry

Nithisathian K., Takala J., Rattanakomut S., Walsh J., Wu Q., Liu Y.

Management and Production Engineering Review

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2012

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Vol. 3, No. 3

53-62

EN

The purpose of this paper is to identify and analyze strategy towards Thailand production service industry. Various tools are applied in the paper, including five force analysis, diamond of nation, and sense and respond method with CFI models. The analysis results show that Thai fine gold jewellery exporter should concern on value added and customer requirement; focus on product development, networking, cooperation between Thai organizers and lobbying; pay more attention to marketing orientation than personal judgment. The benefit of combining five force and diamond of nation model to analyse the strategic condition can be proved in this study.