Computerised parts traceability: An implementation case study

Technovation, 17(10) (1997)583-591 0 1997 Elsevicr Science Ltd Al1 rights reserved. Printed in Great Britain 0166-4972/97 $17.00 + 0.00

Pergamon PII: SO166-4972(97)00039-4

Computerised parts traceability: an implementation case study Amrik S. Sohal Department of Management, Faculty of Business and Economics, Monash University, PO Box 197, Caulfield East, Vit 3145, Australia

Abstract This case study examines the planning

and implementation

parts traceability system at Nippondenso manufacturer

located in Melbourne,

associated planning

(Australia),

Australia.

and training, hardware

of

a computerised

a large automotive parts

The paper discusses the

and software selection,

implementation problems and benefìts achieved from the implementation. Factors critical to successful implementation are also identijîed. In early 1990 the Australian car manufacturers

demanded

Nippondenso fully identifi and trace every component quality. A jive-year plan for computer developed

by Nippondenso

(Australia),

full traceability of products.

that

to assure product

integrated manufacture

(CIM) was

with an initial emphasis on gaining

The computerised

system put in place enables

the identification of al1 incoming goods, direct requisition of those goods from computer processes product

terminals at the shop floor and recording

used in manufacture.

is then stored and is both precise

higher leve1 of quality assurance Nippondenso

(Australia)

handling and production in-progress reduced

The manufacturing

of al1 work and

histoty of every fìnished

and complete.

In addition to a

through traceability of faulty parts,

has gained significant savings from better stock management.

Accurate

information

regarding

work-

and inventory levels greatly aids decision making and has

lead times. 0 1997 Elsevier Science Ltd

L

Traceability is a word which has received recent prominence through its use in the ISO 9000 quality procedures, and refers specifically to the ability to retrace steps and verify that certain events have taken place (Cheng and Simmons, 1994). The motivation behind the development of tracing systems has been legal and/or contractual requirements by customers for very accurate and complete traceability. Another major development in recent years influencing traceability has been the need to identify or trace direct and indirect costs, particularly in a just-in-time manufac-

turing environment (see for example Foster and Homgren, 1988). The response by management accountants has been the development of activitybased accounting systems (Cooper and Kaplan, 1988). Cheng and Simmons (1994) conceptualise manufacturing systems as having three levels-strategy, planning and design, and operations-and suggest that three forms of traceability should be considered at each of the three manufacturing system levels: (1) status traceability, to provide knowledge of the current situation;

Techmvdin~ Vd.17No.10 583

A.S. Sohal

(2) performance

traceability, to compare achievements with plans; and (3) goal traceability, to evaluate performance in the light of objectives. Table 1 shows the application of the three tracing functions at each leve1 in the manufacturing system. It is clear that in the current increasingly dynamic and competitive environment, where a typical plant produces multiple products in smal1 volumes to customers’ orders, managers require information which is relevant, accurate and readily available for effective decision making. Hence, the development and implementation of complete traceability has become a necessity for many manufacturers. This article describes the design and implementation of a traceability system by an automotive parts manufacturer. The following section describes the environment in which the need for traceability was identified. This is followed by a section describing the background of the company and its competitive position. The main section of the paper describes the planning and implementation of the traceability system. The discussion section identifies the problems experienced by the company during implementation and the benefits resulting from the system. The final section identifies a number of critical success factors contributing to the implementation of the traceability system.

TABLE

1.

Application

of al1 three tracing functmns

Operations

Before automatie tracing became a supplier prerequisite, work-in-progress inventory values were estimated until an accurate physical stock count was undertaken. As this was conducted at half-yearly intervals Nippondenso could not, at any one point in time, determine precisely its leve1 of stocks. Furthermore, product progress from raw material through to finished product was manually recorded. This slow and arduous procedure inevitably caused errors in

Examples

Status tracing

leve1

Towards the end of the 1980s the Ford Motor Company of Australia conducted a quality audit of Nippondenso (Australia) Pty Ltd based on the Ford QlOl quality system. They found that Nippondenso (Australia) did not fully implement a ‘First in first out’ stock accounting procedure and, without full traceability, could not identify which batches of raw materials were used in finished goods. As John Burnet, Nippondenso’s Group Manager of Finance and Corporate Services, remembers: “It was the commencement of a new dawn for Nippondenso Australia’s product quality. At the time we were dumbfounded as to how we could comply with this requirement. It was obviously a case for automated recording, but no one else had developed such a system”. The Australian Govemment had developed a plan to rationalise industry participants and, as part of their drive to improve quality, the Australian car manufacturers needed to fully identify and trace every automotive component to assure product quality.

at each leve1 m the system

Function

LeveIs

2. THE NEED FOR A TRACEABILITY SYSTEM

of traced information

Batch sire, run quantay. stock, available

Performance

tracmg

Engineering

transfer quanuty,

machines,

machine

buffer

breakdown

changes. the stochastic variability

processmg times, variante and actual output. machine

beween

time of

planned output

downtime,

output per

employee Improve

Goal tracing

quality,

reduce inventory,

streamline

operations Planning

Status tracing

and design leve1

Current

performances

“tilization.

rework

of operatmns

and scrap level,

level, resource level of work

in

progrtxs Performance

tracmg

Cost of product,

Goal tracing

Output

status tracmg

Current

cxploiting strategy

leve1

throughout

time, productivity

of products, new product introductions, new technology

performances

new orden, expertise,

of planning

product demand,

teachability,

and design level,

intemal

and extemal

culture,

Govemment

revenue,

inventory

regulations Performance

tracing

Return on mvestmcnt,

tumover

rates, profit to sales ratlos, sales per time period Goal traang

Source: Cheng and Simmom

584

bdmovationVd.17No.10

(1994).

Prolit,

market share, growth

of company

Computerised parts traceability

inventory transactions. With thousands of transactions each week, stock records quickly became unreliable and excessive paper handling was inhibiting the efficiency of workers. At the same time, Nippondenso (Australia) also faced a number of other problems. Unions had enforced a total ban on productivity improvements and the functioning of quality circles. There had been continuing, severe industrial unrest, resulting in huge workcare costs. At times there were as many workers at home as at work. Furthermore, Toyota Australia was also demanding Nippondenso to operate an electronie Kanban system using bar codes, with deliveries being made four times per day. Faced with govemment pressure for improved quality and the growing intensity of competition as domestic car sales dropped, Nippondenso (Australia) entered the 1990s with a challenge to improve quality, traceability and tost control and the overall culture of the organisation.

3. COMPANY BACKGROUND, STRUCTURE

STRATEGY AND

Nippondenso (Australia) Pty Ltd is an automotive parts manufacturer situated on a large industrial site west of Melbourne, Victoria. The parent company, Nippondenso (Japan), controls 65% of Nippondenso (Australia) with Toyota (Australia) and Toyota (Japan) holding 25% and lO%, respectively. It is not unusual to find this type of cross-shareholding in Japanese-owned companies. In fact, this collaborative approach is referred to in Japanese as Keiretsu and allows organisations to share scarce resources in order to be more competitive. Nippondenso (Japan) is one of the leading automotive parts manufacturers in the world, with annual gross sales of over $10 billion. The Australian subsidiary has sales of approximately $250 million per annum with about one-quarter from the Melbourne plant. At the peak of the consumer and commercial spending spree in the late 1980s Nippondenso (Australia) employed over 600 workers at its plant in Melbourne. By the end of 1992, as a result of the recession, a dramatic reduction had seen staff numbers fa11 to 340. Nippondenso (Australia) manufactures hundreds of products including radiators, heaters, canisters, blowers and air cleaners for al1 Toyota and Mitsubishi manufacturing requirements, as wel1 as supplying to Ford and Genera1 Motors. In particular, Nippondenso

can manufacture multiple variations of the same product. For example, a radiator may have varying specifications dependent upon the model of the car series it is designed for. Export contracts have been negotiated to increase sales growth. Not surprisingly, Nippondenso Australia’s major competitor is its Japanese parent, which is already providing the components for the Japanese manufacturers and is the world’s cheapest producer at a high leve1 of quality. This type of intensive parental competition emphasises that local manufacturing must be intemationally competitive. However, it keeps Nippondenso (Australia) aware of emerging overseas trends and widens its competitive perspective. Other competitors are Australian companies including Air International, a subsidiary of Futuris Ltd. and Calsonic, a division of Nissan and Natra. The Japanese parental influence is evident in many ways. Frequently, Japanese managers and engineers visit their Australian subsidiary. The objective of these visits is to build upon the close relationship that exists between the related companies and to jointly develop strategie business plans. The current Japanese staff includes the Managing Directer and an executive team of eight advisers. The Japanese senior management, in conjunction with the Australian middle management, plans the short- to medium-term strategy while the parent company devises the long-term strategy. One of the integral components of Nippondenso’s philosophy is, like that of many Japanese companies, the pursuit of Kaken or continuous improvement (Imai, 1986). This is involved in every aspect of Nippondenso (Australia) and is particularly noticeable in its interlinking of manufacturing strategies of quality, delivery, tost, occupational safety and community obligation. Nippondenso’s manufacturing mandate is to instinctively survive competition by reducing costs, canvassing export market opportunities and focusing on specific product markets where expertise can be drawn upon from Japan. This wealth of continuous information of research and development from Japan and other overseas subsidiaries is also assisting the achievement of lower per-unit costs. Yet, due to the recession and the slump in automotive sales, Nippondenso has become increasingly aware of the importante of this tost reduction goal. Nippondenso is relying very heavily on computerisation of the manufacturing processes and is expecting its clerical departments to achieve these tost reductions. Quality is of paramount importante

to Nippon-

Tednovatiom Yd.17No.10 585

demo Australia (see Fig. 1). Unfortunately, tost versus quality is a common trade-off in the automotive parts industry. Hence, Nippondenso has seen the emergence of the low tost, inferior quality, non-genuine parts suppliers. As with al1 other automotive parts manufacturers, the non-genuine parts pose a continual potential threat to the ‘price conscious buyer’. Nippondenso (Australia) admits its competitive advantage is underwritten by the 35% Australian import duty (reducing to 15% by 2000) that imported manufactured parts are subject to. This results in a price advantage and, together with a short lead time of delivery to customers, helps Nippondenso to maintain a competitive position.

4. DEVELOPING COMPUTER-BASED MANUFACTURING It was nearly 10 years ago when Nippondenso (Australia) envisaged the need for a fully computer integrated manufacturing (CIM) system. Nippondenso’s manager of Information Systems recalls: “1 remember one afternoon sitting at my desk thinking about the technological innovations needed to make Nippondenso a truly competitive force during the 1990s. 1 needed to unfreeze the top management’s philosophy yet realised this required incremental changes over a number of years”. To clarify his thoughts, the Information Systems manager drew up a plan outlining the project objectives, current situation, problems, solutions, and personal evaluation. When the Information Systems manager was given the endorsement of top management at Nippondenso

Delivery

Volume

Lead Time

Variability

FT-

i-1

LOW -. Fig.

586

1.

Tadmov~Vd.17No.10

High

-

Perceived

Market

Achieved

Performance

Dimensions

of competitiveness

Requirements

(Japan) and started on the programme of change, he found what he had suspected. Top management had limited computer literacy skills and, furthermore, did not appreciate the potential of CIM in terms of developing and sustaining a competitive advantage. With this in mind, the manager cajoled his senior management team to accompany him off-site where they had first-hand experience with a multitude of software applications (business graphics, word processors, excel spreadsheets, desk top publishing and electronic mail). Soon after convincing the decision makers that computers were an essential business requirement, the Information Systems manager commenced writing a comprehensive computer manual which was titled NEMO (Nippondenso Effective Management in the Office). Starting at the personal computer level, the manual gave a step-by-step explanation of the improvement to Nippondenso (Australia) that the implementation of a fully computer integrated manufacturing system would have. Next, he developed the office systems five-year plan and explained the polities necessary for implementation to senior management. “Nippondenso’s Mapics DB software needed to be hooked up to an IBM AS400 computer. This was one of my biggest challenges” the manager claimed “because it was the platter upon which 1 would eventually place al1 of my requirements. It needed to be big enough for what 1 wanted to do today, tomorrow and in five years’ time”. Using Mapics DB as the centra1 software program, individual applications were then added to the existing network as capita1 expenditure became available. In the early 1990s Electronic Data Interchange (EDI) was connected to Mapics DB and implemented to provide quick order responses from suppliers and automatie ordering from customers. Within a year, payroll was adding to the administrative synergies and, within months of this being fully operational, computer aided design/computer aided manufacture (CADKAM) was implemented. “We found the first implementation of EDI was the most difficult because it was an understanding bridge everyone had to cross. The recent implementations involving accounts, engineers and the manufacturing team were a lot smoother because al1 we had to do was attach them to the proprietary system” said John Bumet, Group Manager for Finance & Corporate Services. However, the implementation of the parts traceability system was considered to be the catalyst of the competitive change in strategie manufacturing for Nippondenso (Australia).

Computeriied parts traceabilii

5. TRACEABWY

SYSTEM: PLANNING AND PREIMPLEMENTATION

When the Quality Assurance manager notified senior management of the car manufacturers’ purchasing requirement of tracing the source of any faulty automotive parts, a Quality Council of top management was formed. They quickly identified that Nippondenso (Australia) could estimate when batches were produced only by reconstructing material arrival dates and the production process times. This was considered unsatisfactory and Nippondenso’s Managing Directer agreed that something must be done. Although the solution planning involved the sales/marketing, manufacturing and administration departments, it was the Information Systems department which addressed the technical aspects. John Burnet, Group Manager for Finance & Corporate Services, acted as the project leader with authority to allocate resources. Databars (Australia) Pty Ltd, an expert in systems design and implementation, was brought in to set up the software. John Clinch, Databars’ consultant who was assigned to the project, reflected on the planning stages: “The evaluation was firstly conceptual with the system framework and feasibility study being submitted to Nippondenso (Australia)“. Upon receiving the proposal, Nippondenso (Australia) decided the financial evaluation should not be based strictly upon return on investment but seen as a necessary step to consolidate business relationships with customers. Nevertheless, significant savings were achieved. Within months of the proposal being accepted, Databars (Australia) and Nippondenso (Australia) entered into an agreement whereby Databars developed the database and barcode system according to Nippondenso’s concepts and specifications. Umit Nedim, Nippondenso’s information systems specialist, was appointed to work full time alongside Databar’s consultant. Their 25month-long relationship proved to be crucial to the success of the system. Nippondenso (Australia) also directly involved the Metal Workers Union in the normal day-to-day communications such as meetings and informal personal contact as opposed to indirect channels of written letters and memos. Nippondenso’s attitude is to utilise its unions as a human resources backdrop and not merely as a last resort to protracted arguments and worker hostilities. However,

the planning stages were unavoidably

frustrated as a result of changing priorities in the manufacturing/engineering department. After 12 months of detailed planning, the proposal was finally approved.

6. TRACEABILlTY SYSTEM: IMPLEMENTATlON A team of six, comprising two persons each from logistics, data processing and production, was responsible for ensuring the system operated efficiently in the plant. As a trial, the system was piloted in the moulding section. Once smal1 teething problems such as safe wiring connections and choosing the most suitable positions for terminals were overcome, the system was progressively installed throughout the factory to the final assembly. Capita1 expenditure for the full traceability project exceeded $300 000. The software development stage, including writing and system formatting, was estimated at over $100 000 while the 15 work stations microcomputer terminals tost another $100 000. Direct wage-related expenses included intemal staff training, and miscellaneous items such as Kanban cards, computer stationery and maintenance charges accounted for the balance. Two persons from the Logistics Department undertook the difficult job of introducing the full traceability system to the shop floor employees. They were chosen due to their experience as storemen who understood the necessary communication required on the shop floor. As Umit Nedim explained, “we carefully chose those guys that had first hand knowledge of the potential problems which would be confronted so they could not only solve them quickly but hopefully pre-empt them before they evolved”. Training commenced with the group leader of every work station. Once the trainers felt they had accomplished the essential skills required to fully operate the system, each group leader was allowed to instruct his team of workers. Periodically, or if any clarification was needed, the Logistics Department trainer was readily available to answer simple queries or problems.

7. ACHIEVING FULL TRACEABILlTY Every stage that each component passes through the Nippondenso automotive plant is recorded by the computer to ensure traceability. The key elements of the system are as follows.

Technoratiom Vol. 17No.10

567

7.1 Receipt of goods Incoming materials and components to the factory are received through one of three entry points. At each location an operator enters the received goods into a computer terminal and prints out a Purchase Order receipt number and barcode. Certain supplier’s products that have been authorised by Nippondenso’s Quality Assurance department proceed directly to the production lines. Otherwise the containers are inspected by sampling before the pick tag is attached. The system wil1 keep track of al1 items that are currently awaiting inspection. Nippondenso can trace back to these goods from their product batch numbers. 7.2 Issue to the werk centre After passing inspection, the goods are allocated to the store. When components are required, the operator at the work centre stans an appropriate barcode of the material and an order tag is printed in the store detailing the requisition. Each pick tag has three parts:

(1) The storeman wil1 scan the unique receipt number barcode and the pick tag barcode before issuing the goods to the work centre. (2) When the production line uses the goods, it also stans the number to record which batch of products is being used. (3) The number can be scanned to automatically generate a replenishment order in the store. 7.3 Start&

a job

If the part to be produced is controlled by a Kanban, then the quantity to be produced wil1 be standard and the operator stans the job card barcode and selects the machine or line that wil1 produce that part. If the part to be produced is not controlled by a Kanban, then the operator wil1 also be required to enter the number of containers to be produced.

corresponding raw materials arrive at that process. This may be on a pick tag in the case of goods that have come from outside suppliers, or a production control card in the case of parts that have been produced by an earlier process or retumed from an outside service. Al1 materials are flagged as being used by a work centre or by a specific machine or line. For example, welding sticks are used by a work centre and shared by several machines, whereas a rol1 of steel is used by one stamping machine only. 7.6 Material ordering Material can be ordered from the store by scanning the appropriate barcode on the pick tag from the previous part container or by making a selection from a list of parts that are set by that work centre. When a stock order is recorded by the factory floor, the supply department simultaneously receives the message and has 30 minutes to process the order. 7.7 Finished product dispatch The production control card is scanned and a barcoded label(s) is printed with a unique lot number and attached to the container. 7.8 Parts traceabiiity functions Both forward and backward traceability screen displays and reports are available with very flexible selection criteria. Overall, senior management was satisfied with the speed of implementation, considering the nature and extremity of change in operation from a manual oriented to a computer dependent shop floor.

8. TRACEABMTY SYSTEM: POST-IMPLEMENTATION 7.4 Record@ production Production is recorded by scanning the barcode on the production control card. As the goods are produced the scanner ticket tells the computer the bil1 of raw materials required. Once the production quantity number of tickets is scanned, the job is automatically terminated. 7.5 Material usage As a component moves from one work station to another it is treated as a raw material. Raw materials are scanned to record when that batch number and the

588 [email protected]

Immediately following the successful introduction of the full traceability system, Nippondenso’s Umit Nedim and Databars’ John Clinch jointly documented the processes in a procedural manual after consultations with the factory floor operators. The ‘Material Traceability Manual’ consists of 20 simple steps with diagrams to illustrate the job descriptions. These include signing on/off, material receiving, ordering and storing as wel1 as how to start a job, viewing material in use and printing pick tags. One consideration causing management some concern was the delegation of control of the system as

Computerised parts traceability

new personnel became progressively trained and involved with the system. Inevitably, intemal conflict existed regarding which department the systems manager would come from (either Electronic Data Processing or Logistics). As full traceability systems are quite complex, intensive training was necessary for the selected systems manager. The aptitude of the chosen candidate was considered crucial to the ongoing success of the system. Prior concerns about the computer terminals being stolen, damaged or destroyed proved to be unfounded. Although training was within the budget, Nippondenso has continually encouraged individual workers to attend intemal and extemal personal computer training programmes. Management was stunned by the overwhelming response to a six-week course offered. Twice each week 60 people from the shop floor spend several hours leaming about the various software applications available on PCs.

9. DISCUSSION As is the case with any change programme, Nippondenso’s implementation of the traceability system presented a number of problems. Lack of communication between senior management and the Information Systems department appeared to hamper the efficiency of the implementation of the traceability system. Initially, top management was opposed to the shop floor workers using the system and wanted only the team leaders to use it. This highly mechanistic organisational approach with centralised decision making is a legacy faced by most manufacturing companies that undergo a complete change to their manufacturing processes. Senior managers were not the only sceptics. Other departmental managers could not see the system benefits, which resulted in unfounded rumours of the incapability of full traceability. The most significant unplanned change required was discipline within the organisation. Given the dependency of the computer program upon the accuracy of information entered by the previous operator, strict procedural guidelines were required to be followed. As the factory floor workers were not used to this regimentation, they often forgot to scan the parts, which slowed the materials flow as the step had to be repeated. A commitment to training is one way Nippondenso is continuously improving intemal discipline. The team leader is also constantly encouraging the work-

ers to perform at higher levels as wel1 as personally instructing workers on overcoming recurrent problems. Traceability has been shown to be more than a system to trace the sources of problems. It has become a factory management system where daily production utilisation and can be planned, machine/line efficiency can be analysed, up to date work-in-progress is monitored and intemal or extemal parts shortages are notified. Previously, paperwork recording errors caused 80% inventory control problems. With the traceability systems, errors reduced to less than 10% and line stoppages because of parts shortages cut by more than 70%. The number of storemen required reduced by more than half, resulting in savings estimated at $500 000 per annum. Reduced labour costs resulting from improved stock handling between the store and the production line are estimated to have saved over $130 000 per annum. Previously, the foreman would have to prepare an order manually and wait for the group leader to collect the item and return with the product. However, the traceability system has not reduced the overall finished goods inventory, although workin-progress stock is continually reducing. Full traceability fills the traditional manufacturing ‘black hole’, giving precise inventory statistics. Consequently, stock takes now require only a barcode scanning, eliminating the need for physical stock takes while enforcing control. The new system also ensures that the ‘First in first out’ policy is adhered to and, if an attempt is made to use a container out of order, then the operator wil1 be alerted and advised of the appropriate pick tag to be used. Nippondenso can now trace which batch of material went into any faulty product. This allows specific identification (labelling) of a product and accurate recall, instead of recalling a range of products over a non-specific manufacturing period. Nippondenso has had no product recalls in the three years since the system was established. In the event of a recall, however, Nippondenso could determine which batch of goods was faulty, and the likely source of faulty materials, in less than one day. Previously the time taken would have been two weeks. Nippondenso’s increased customer responsiveness was evidenced in the reduction in time it took for delivery. Nippondenso has increased its competitive advantage by having this forma1 system of traceability as opposed to an informal system which most compa-

Tednovation Vol. 17No.10 589

nies use. Whereas competitors use their records to react to customer complaints, Nippondenso are proactively selling the traceability system as a comparative advantage. Progressively, the fear of the unknown is subsiding and the entire workforce is involving itself in traceability as computer familiarity improves confidence amongst employees. This sense of involvement has visibly raised factory floor morale and generated a feeling of involvement and motivation. Gradual installation throughout the work centre has assisted this educative approach, which was imperative for acceptance by employees. The traceability system allows Nippondenso (Australia) to collect data while reducing tost of data input and increasing data accuracy. Traceability contributes to integrating information technology with electronic data interchange (EDI), material requirements planning (MRP) and advanced shipping notices. The choice of physical hardware has brought more benefits to Nippondenso (Australia). The scanner reads the barcode the first time and is resistant to grease and dirt around the factory. A thermal transfer printer is used which retains the legibility of a ticket for up to three years. The system also has several safety mechanisms built in. In some instances the computer corrects human error and in other occasions prompts the user for correct information. For example, the system notifies the controlling department of a minimum inventory balance for each part.

10. CONCLUSIONS This case study describes the implementation of a parts traceability system in an automotive parts manufacturer. A number of factors critical to the development and implementation can be identified from this case study:

(1) Top management

understanding of computerbased/computer-integrated manufacturing (CIM) is essential. Without this, little wil1 be achieved. (2) A long-term plan for CIM is necessary. A standalone system wil1 do little to improve the overall competitiveness of the organisation. (3) A multidisciplinary team approach to planning and implementation is beneficial, although a champion is crucial to the success of the overall project. New systems wil1 almost always involve outside (4) vendors and consultants. Relationship building

5% Tedmo~ation Vol. 17No.10

between the vendor and users is essential for successful introduction and implementation. (5) Training of employees is absolutely essential. Appropriate training programmes must be developed. (6) Benefits of the new system must be communicated and understood by everyone in the organisation. The fear of the unknown must be overcome by enabling employees to become involved with the new system. (7) Discipline must be enforced in the proper use of the system. Obtaining the cooperation of the shop-floor unions and the employees was absolutely crucial. Nippondenso achieved this by building relationships between management and employees. The establishment of committees on the shop floor, and improved working conditions, assisted in these relationships. Initiatives undertaken included job rotation, reduction of noise pollution and rest break areas. A considerable emphasis was placed on employee training and on simplifying the award structure. One union site agreement was reached and salary scales were simplified. Employees were rewarded on productivity improvements, and management gave its agreement to no job losses from the introduction of the new technology. This case example again demonstrates the centra1 role played by the people within the organisation in achieving successful new technology implementation. In describing the implementation of a number of new manufacturing initiatives including total quality management, just-in-time and advanced manufacturing technologies, Samson et al. (1993) concluded that people lie at the heart of any systematic improvement initiative and that there has been an imbalance between the relative importante of system design and characterisation versus the people/implementation issues. They go on to suggest that the human performance and cultural issues have become the success factors or constraints to new technology implementation and require further understanding and research. It is hoped that this paper wil1 make a contribution to filling this gap in the literature.

Acknowledgements The author is grateful to the management and employees of Nippondenso (Australia) for sharing their experiences, and to Monash University for providing the funds to complete the research reported in this paper.

REFERENCES Cheng, M. J. and Simmons, J. E. L. (1994) Traceability in manufacturing systems. International Journal of Operations and Production Management 14, 4-16. Cooper, R. and Kaplan, R. (1988) Measure costs right: make the right decisions. Harvard Business Review (September/October), 96-103. Foster, G. and Homgren, C. (1988) Cost accounting and tost management in a JIT environment. Journa1 of Cost Management 1, 443. Imai, M. (1986) Kaken; The Key to Japan’s Competitive Succes. McGraw-Hill, New York. Samson, D., Sohal, A. and Ramsay, E. (1993) Human resource issues in manufacturing improvement initiatives: case study experiences in Australia. International Journal of Human Factors in Manufacturing 3, 135-152.

Amrik Sohal is a Professor in the Depart ment of Management, Faculty of Business and Economics, Monash University, Melbourne, Australia, where he is the Directer of the Quality Management Research Unit and Head of the Operations Management Cluster. He is also Associate Dean (Graduate Teaching) in the Faculty of Business and Economics at Monash University. Professor Sohal holds a PhD in Manufacturing/Operations Management from the University of Bradford Management Centre in the UK, as wel1 as a BEng (Hans) and an MBA, also from the University of Bradford. He is a Chartered Engineer and a member of the Institution of Electrical Engineers and the Institute of Quality Assurance in the UK. His current research interests are in manufacturing/operations strategy, technology management and quality management. He has received several research grants from the State and Federal Govemments, the Australian Research Council and industry. Professor Sohal has authored or co-authored over 50 research papers published in refereed joumals, as wel1 as four books and a number of chapters contributed to books. He has been a speaker at numerous national and intemational conferences. He has over 10 years of working experience in the manufacturing industry in the UK and has been a consultant to smal1 and large organizations in Australia and overseas.

Te.dtnovation Vol.17No.10 591

Translations of abstracts

sonnalité ont influé sur la motivation des réalisations parmi les spécialistes de l’étude et de la recherche, dans un contexte de développement, et précisément à Taiwan. L’hypothèse de base est que les traits de notre personnalité sont des éléments fondamentaux de la motivation pour la réussite et sont influencés par les fondations philosophiques et les valeurs de la société dans laquelle ils se trouvent. La présente étude utilise un inventaire autodéveloppé (inventaire de la personnalité confucéenne) permettant d’identifier les différents types de personnalité afin d’analyser les différences entre les spécialistes de l’étude et de la recherche dans la Société chinoise. En effectuant un sondage auprès des professionnels de douze représentants d’organismes et de recherche à Taiwan, on a tiré les conclusions suivantes: Elles ne doivent pas négliger les facteurs culturels dans l’analyse de problèmes de gestion, en particulier pour un pays ancien et civilisé comme la Chine. Du fait de l’influence confucéenne, le système de valeurs chinois en matière de personnalité est plutot défavorable en ce qui conceme l’exercice de la gestion dans les organismes d’étude et recherche. Le type de personnalité confucéenne a des implications importantes pour la gestion de spécialistes d’étude et de recherche à Taiwan. 0 1997 Elsevier Science Ltd

Entwickkmg der Fähiieiien und Management von professionellen Forschem & Entwicklem in einem Entwicklungskontext, Taiwan

Abriss Diese Arbeit untersucht die Frage, wie die moralischen Werte des Konfuzius in bezug auf Persönlichkeit die Leistungsmotivation auf der zweistufigen Leiter von professionellen F&En in einem Entwicklungsland, Taiwan, beeinfluBt haben. Die Grundannahme ist, dal3 Persönlichkeit ein fundamentaler Wesenszug für Leistungsmotivation ist, und von den philosophischen Grundelementen und Wertsystemen der sie umgebenden Gesellschaft beeinflugt wird. Diese Studie benutzt ein selbst-entwickeltes Inventar (Konfuzianisches Persönlichkeitsinventar), urn die verschiedenen Persönlichkeitstypen zu identifizieren, und die Unterschiede zwischen professionellen F&En in der chinesischen Gesellschaft zu analysieren. Anhand einer Untersuchung durchgeführt mit Fachleuten aus 12 rewäsentativen F&Es Institutionen in Taiwan wurden die folgenden Schlüsse gezogen: 1. Die kulturellen Faktoren bei der Analyse von Managementproblemen dürfen nicht vemachlässigt werden, besonders in einem alten und zivilisierten Land wie China.

596 ~edmouatioa Vol. 17No.10

2. Aufgrund des Einflusses von Konfuzius ist das chinesische Wertesystem in bezug auf Persönlichkeit recht negativ gegenüber Managementfunktionen in F&Es Institutionen. 3. Der konfuzianische Persönlichkeitstyp hat eine wichtige Folge für das Management von professionellen F&E in Taiwan. 0 1997 Elsevier Science Ltd

El desarrollo de la capacidad y la administración de los profesionales de I&D en un contexto de desarrollo, Taiwan

Resumen Se examina la influencia de los valores morales confucianos de la personalidad en cuanto a la motivación hacia el logro entre los dos rangos de profesionales de la I&D en un contexto de desarrollo, es decir Taiwan. La premisa básica es que las caracterfsticas de la personalidad constituyen una base fundamental para la motivación hacia el logro y están influenciados por las bases filosóficas los sistemas de valores de la sociedad donde se encuentren. En este estudio se emplea un inventorio auto-desarrollado (el Inventorio Confuciano de la Personalidad) para identificar a los distintos tipos de personalidad con el fin de analizar las diferencias entre distintos profesionales de la I&D en la sociedad China. Basado en una investigación entre profesionales de doce institutos representativos de la I&D en Taiwan se llegaron a las siguientes conclusiones: 1. NO se pueden ignorar los factores culturales en el análisis de los problemas de administración, especialmente en el case de un pais antiguo y civilizado coma China. 2. Debido a la influencia confuciano, el sistema de valores chino en cuanto a la personalidad no es favorable en absoluto para la administración de los institutos de I&D. 3. El tipo de personalidad confuciano tiene una implicación importante para la administración de los profesionales de la I&D en Taiwan. 0 1997 Elsevier Science Ltd

Computerised implementation

patts traceability: case study

Amrik S. Sohal

Technovation

17( 10) (1997), 583-591

an

Translations

Rattachement

infotmatisé

des pièces détachées:

une

étude de cas pour la réaliition

Résumé Cette étude de cas examine la planification et la réalisation d’un système informatisé de rattachement des pièces détachées à Nippondenso (Australie), un grand constructeur de pièces pour automobiles situé à Melbourne, en Australie. La communication examine la planification et la formation connexes, la sélection du matériel et du logiciel, les problèmes de réalisation et les avantages apportés par la réalisation. En outre, des facteurs essentiels pour une bonne exécution sont également identifiés. Au début de 1990, les constructeurs automobiliers australiens ont réclamé que Nippondenso assure l’identification et le rattachement de chaque pièce afin d’assurer la qualité du produit. Un plan sur cinq ans pour la fabrication intégrée par ordinateur (FIO) a été dressé par Nippondenso (Australie); il mettait l’accent initialement sur la réalisation d’un rattachement intégral des produits. Le système informatisé mis en place permet l’identification de toutes les marchandises reçues, la réquisition directe de ces marchandises par les terminaux d’ordinateur de l’atelier ainsi que l’enregistrement de l’ensemble des travaux et procédés utilisés dans la fabrication. L’historique de la fabrication de chaque produit fini, à la fois précis et complet, est ensuite mémorisé. En plus du haut niveau de l’assurance de qualité offerte par le rattachement de pièces défectueuses, Nippondenso (Australie) a été en mesure d’effectuer des économies sensibles grâce à l’optimisation du traitement des stocks et de la gestion de la production. La précision des informations relatives aux travaux en tours et les niveaux d’inventaire facilitent énormément les prises de décision et permettent de réduire des délais. 0 1997 Elsevier Science Ltd

Computerisierte

Riickvetfolgbarkeii

eine Fallstudie

zur Implementierung

von Komponenten:

Abriss Diese Fallstudie untersucht die Planung und Implementierung eines computerisierten Systems zur Rückverfolgung von Komponenten bei Nippondenso (Australien), einem grogen Hersteller von Automobilteilen mit Sitz in Melbourne, Australien. Die Arbeit diskutiert die Planung und das Training im Zusammenhang mit dem System, Auswahl von Hardware und Software, Probleme bei der Implementation und Vorzüge, die von der Implementation abgeleitet wurden. Kritische Faktoren ftir die erfolgreiche Implementierung werden ebenfalls identifiziert.

of abstracts

Anfang 1990 verlangten die australischen Automobilhersteller, dal3 Nippondenso jedes Einzelteil vollständig identifizieren und zurückverfolgen kann, urn Produktqualität zu sichem. Nippondenso (Australien) entwickelte einen Fünfjahresplan für computer-integrierte Fertigung (CIM) mit anfänglicher Betonung auf dem Erreichen von vollständiger Rückverfolgbarkeit der Produkte. Das installierte Computersystem ermöglicht die Identifikation aller eingehenden Waren, direkte Anforderung dieser Waren von Computer Terminals am Arbeitsplatz und die Erfassung aller Arbeiten und Verfahren, die im FertigungsprozeB eingesetzt werden. Die Fertigungsgeschichte jedes fertigen Produkts wird darm gespeichert und ist sowohl komplett als auch akkurat. Zusätzlich zu einem höheren Niveau der Qualitätssicherung durch Rückverfolgbarkeit von fehlerhaften Komponenten, hat Nippondenso (Australien) beträchtliche Einspanmgen durch bessere Handhabung des Inventars und besseres Produktionsmanagement gemacht. Akkurate lnformationen in bezug auf unfertige Erzeugnisse und Inventarbestand helfen sehr bei der Entscheidungsfällung und haben die Laufzeiten reduziert. 0 1997 Elsevier Science Ltd

La identificación

informatizada

del origen

de las

piezas: un estudio de case de la implementación

Resumen En este estudio de case se examina la planificación y la implementación de un sistema informatizado de identificación del orígen de piezas en Nippondenso (Australia), grandes fabricantes de piezas para automóbiles ubicados en Melbourne, Australia. Se comentan la planificación y la formación asociadas, la selección de hardware y software, los problemas de implementación y los beneficies logrados a raíz de la implementación. Se identifican también los factores importantes para el éxito de la implementación. A principios de 1990 los fabricantes australianos de automóviles obligaron a Nippondenso a identificar totalmente y averiguar el orígen de cada pieza para asegurar la calidad del producto. Nippondenso (Australia) desarrolló un proyecto de cinco años para la Fabricación Integrado por Ordenador (CIM) con el énfasis inicial en lograr la identificación absoluta del orígen de los productos. El sistema informatizado instalado permite identificar todos los productos importados, la petición directs de aquellos productos desde pantallas en los talleres y la annotación de todos los trabajos y procedimientos empleados en la fabricación. Los datos de fabricación de cada producto terminado se almacenan a continuación, precisos y completos. Además del mayor nivel de control de calidad facilitado por la identificación del orígen de las piezas defectuosas, Nippondenso (Australia) se ha beneficiado de unos ahorros significativos por la ges-

TecI~vation Vd.17No.10 597

tión de inventorios y la administración de la producción mejoradas. Los datos precisos acerca de los trabajos en mano y de los niveles de inventorio facilitan en gran medida la toma de decisiones y ayudan a rebajar los tiempos de entrega. 0 1997 Elsevier Science Ltd

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