Manufacturing capabilities and performance: a critical analysis and review

Abstract

In order to advance scientific knowledge, it is important to maintain consistency regarding the methodologies and units/levels of analysis employed to test a theory's main claims. Thus, this investigation provides a critical examination of the papers that have aimed to test the trade-off model and its competing concepts. The analysis focuses on the methodologies used to examine the validity of such models and theories, and also on the operationalisation of the variables that represent the level of analysis by which those theories are tested. To aid in the investigation, a framework to distinguish measures of performance with an internal and external reference and perspective is proposed. The results show that current methodologies, approaches and rationales used to determine the validity of the trade-off model or its rival concepts observe important limitations, as they do not address the trade-off model's core principles. Those limitations in turn make the results of those studies questionable. Consequently, it is proposed that in order to advance theory in our field, more consistent methods and approaches should be utilised.

Keywords:

• trade-offs
• cumulative capabilities
• rigid-flexibility
• compatibilities
• external reference
• internal reference
• literature review

Acknowledgement

The authors wish to acknowledge the comments and suggestions by Professor Wickham Skinner which greatly improved the paper. The usual disclaimers apply.

Notes

Note

1. It adds an unnecessary generalisation to a very specific issue that is far from being resolved (i.e., sequential and cumulative internal improvements lead to higher performance on several manufacturing performance metrics) and clearly in need of more specific and consistent studies and evidence. It dilutes the intended purpose of the original proponents of those models (e.g., Nakane 1986, Ferdows and de Meyer 1990). Not only did those authors propose that companies could achieve high performance levels on several measures. They also specifically argued that sequential and cumulative internal improvements on each of the manufacturing performance areas could lead to the achievement of high levels of performance across the board. At least two on-line dictionaries (Merriam-Webster 2008 and Cambridge Advanced Learner's 2008) use words and phrases such as ‘increasing by successive additions’ and ‘increasing by one addition after another’ to define the meaning of ‘cumulative’ respectively. In those same sources, ‘sequence’ is defined as ‘order of succession’ and ‘a series of related things or events, or the order in which they follow each other’ respectively. We see a strong similitude and complementarities between the meanings of ‘cumulative’ and ‘sequence’.