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To cite this article: Abid Haleem, Sushil, Mohammad Asim Qadri & Sanjay Kumar (2012): Analysis of critical success factors of
world-class manufacturing practices: an application of interpretative structural modelling and interpretative ranking process,
Production Planning & Control, DOI:10.1080/09537287.2011.642134
To link to this article: http://dx.doi.org/10.1080/09537287.2011.642134
Department of Mechanical Engineering, Faculty of Engineering and Technology, Jamia Millia Islamia, New Delhi 110025,
India; bDepartment of Management Studies, Indian Institute of Technology, New Delhi 110016, India;
c
Department of Mechanical Engineering, Galgotias College of Engineering and Technology, Greater Noida 201306, India
1. Introduction
The removal of trade barriers and concomitantintensified competition among firms at the international level has put the organisations under paramount
pressure to review their traditional manufacturing
practices. Now, they are motivated to consider
adoption of emerging world-class manufacturing
(WCM) practices that differentiate them from, and
provide them with an edge over, the run-of-the-mill
companies. Nakane and Hall (2007) observed that
some of the manufacturers were undergoing a paradigm shift in the way they look at manufacturing
operations these days. As of today, Indian manufacturing industry has not fared well against the
aggressive competitive strategies adopted by their
international counterparts.
The challenge for the Indian manufacturers today
is to update their manufacturing activities to remain
competitive in the global arena. To address this
challenge, the Indian manufacturing firms need to
understand the factors that play a critical role in the
implementation of WCM practices and their implications on strategic business objectives. This study
A. Haleem et al.
2. World-class manufacturing
2.3. Six-sigma
improvements in efficiency;
cost reduction;
improved sales/profitability;
enhanced customer value;
customer satisfaction;
improved customer loyalty (Oztays et al. 2011).
4. Research methodology
The objectives of this article are to examine the
relationships among various CSFs of WCM practices
and to rank them with reference to various performance measures. Here, the ISM is used to examine the
contextual relationships among CSFs of WCM practices. IRP is applied to rank the CSFs in relation to
various performance measures.
A. Haleem et al.
10
1
2
3
4
5
6
7
8
9
A
O
V
V
O
V
A
X
X
O
O
O
X
O
O
A
A
A
V
V
V
X
V
X
A
O
V
V
V
V
A
O
X
V
A
O
O
V
V
A
X
A
O
O
10
Driving power
Rank
1
7
8
2
5
9
10
3
6
4
Dependence
1
1
1
1
0
1
1
1
1
1
9
0
1
1
0
1
1
1
1
1
1
8
0
1
1
1
1
1
1
1
1
1
9
0
0
0
1
0
1
0
0
0
1
3
0
0
1
0
1
0
0
1
1
1
5
0
1
1
0
0
1
1
0
0
1
5
0
0
1
0
0
1
1
1
1
1
6
0
1
0
0
0
0
0
1
1
1
4
0
0
0
0
0
0
0
1
1
1
3
0
0
0
1
0
1
0
0
0
1
3
1
5
6
4
3
7
5
7
7
10
VII
IV
III
V
VI
II
IV
II
II
I
CSF
1
7
8
2
5
9
10
3
6
4
Reachability
set
Antecedent
set
Intersection
Level
1
3,7,8,9
5,7,8,9,10
2,4
5
4,9,10
9,10
3,6
3,6
4
1,2,4,6,7,8,9,10
3,4,5,6,7,8,9,10
2,3,4,5,6,7,8,9,10
2,4,9
3,4,5,6,10
4,9,10
3,4,6,9,10
3,4,6
3,4,6
4
1
3,7,8,9
5,7,8,9,10
2,4
5
4,9,10
9,10
3,6
3,6
4
I
II
II
III
III
IV
IV
V
V
VI
A. Haleem et al.
1. Satisfaction of internal customers
7. Adequate and poka-yoke quality
Driving power
10
9
8
7
6
5
4
3
2
1
IV
III
9
8
10
2
5
I
1
II
10
Dependence
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
0
0
1
1
0
1
1
1
0
0
1
1
0
0
0
0
0
0
1
0
0
0
0
0
0
0
1
0
0
0
0
0
1
0
0
0
0
0
0
1
0
1
0
1
0
0
0
1
1
0
1
0
0
1
1
0
0
1
0
0
1
0
1
1
1
0
1
0
0
1
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
1
0
1
0
0
0
0
1
A4
Quality directly
improves
Continuous
improvement is
important for
increase in
quality
A7
A8
A10
A9
It improves quality
A6
A5
Use of IT directly
improves quality
through fast
communication
A3
A2
A1
P1
A more satisfied
staff is subjected to
reduced level of
stresses
Health management help in reducing stress level
P2
Direct effect of
reduction in
defects
P3
Information system
helps in knowing exact level of
inventory to be
kept
P4
Satisfied staff
increases market
presence through
word of mouth
P6
Direct impact of
employee satisfaction can be seen on
profitability
P7
More rewarded
staff is highly
committed
towards
company
More viability in
market
Increased market
presence means
strong customer
base and thus
increased profit
Direct impact on
financial profit
It improves
profitability
P5
Leads to improved
green image of
the company
P8
Production time
decreases
P9
Reduced
wastages
Reduction in waste
helps in optimal
usage of
resources
It helps in reducing
waste and optimal usage of
resources
P10
A. Haleem et al.
Paired comparison of
CSFs in terms of
dominance
A1 dominating A2
A3 dominating A1
A3 dominating A10
A4 dominating A1
A4 dominating A2
A4 dominating A3
A4 dominating A9
A5 dominating A1
A5 dominating A3
A5 dominating A4
A5 dominating A7
A5 dominating A10
A6 dominating A3
A6 dominating A4
A6 dominating A8
A7 dominating A1
A7 dominating A3
A7 dominating A4
A7 dominating A6
A7 dominating A8
A7 dominating A10
A8 dominating A1
A8 dominating A3
A8 dominating A4
A8 dominating A5
A8 dominating A10
A9 dominating A1
A9 dominating A2
A10 dominating A1
A10 dominating A3
A10 dominating A4
Performance variable(s)
for which the dominance
holds good
P2
P7
P4, P7, P10
P6, P7
P5, P7
P1, P7
P6
P6, P7
P7, P10
P6, P7
P7, P10
P7, P10
P1
P1
P1
P7
P1, P7
P1, P3
P1
P1, P7
P7
P6, P7
P1, P7
P1, P6, P7
P6
P7
P2
P2, P5
P7
P7
P7
The interpretive ranking model diagrammatically displays the final ranks of the ranking variables. Figure 3
shows the ranks of various actions w.r.t. their roles in
achieving different performance areas. The arrows in
the diagram represent the reference variable(s) in the
cases where a particular ranking variable is dominating
the other ranking variables.
P1,P6,P7
P2,P5
P4,P7,P10
A9
A10
P6,P7,P8,P10
A5
A8
P1,P5,P6,P7
A4
P1,P9
P1,P4,P7,P10
A3
P1,P3,P7
P5
A2
A7
A1
Being
dominated #
A6
A1
Dominating !
A2
P4,P7,P10
P2,P5
P1,P6,P7
P1,P3,P7
P1,P9
P6,P7,P8,P10
P1,P5,P6,P7
P1,P4,P7,P10
P2,P6,P7
P7
P2,P5
P1,P6,P7
P1,P3,P7
P1,P9
P6,P7,P8,P10
P1,P5,P6,P7
P2,P5
P2,P6
A3
P4,P7,P10
P2
P1,P6,P7
P1,P3,P7
P1,P9
P6,P7,P8,P10
P4,P10
P2
P2
A4
P4
P2,P5
P1,P6
P1,P3
P1,P9
P1,P5
P1,P4
P2,P5
P2
A5
P4,P7,P10
P2,P5
P6,P7
P1,P3,P7
P6,P7,P8,P10
P5,P6,P7
P4,P7,P10
P2,P5
P2,P6,P7
A6
P5,P6
P4,P10
P2,P5
P2,P6
A7
P4,P10
P2,P5
P6
P9
P6,P7,P8,P10
P1,P5,P6,P7
P1,P4,P7,P10
P6,P7
A9
P4,P10
P2,P5
P1,P3,P7
P1,P9
P4,P7,P10
P1,P6,P7
P1,P3,P7
P1,P9
P7,P8,P10 P6,P7,P8,P10
P5
P4,P10
P2,P5
P2
A8
P2,P5
P1,P6,P7
P1,P3,P7
P1,P9
P6,P7,P8,P10
P1,P5,P6
P1,P4,P7,P10
P2,P5
P2,P6
A10
10
A. Haleem et al.
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
(B)a
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
Number of cases
dominating (D)
Net dominance
(D B)
Rank dominating
1
4
4
4
2
3
3
2
3
26
4
4
4
2
3
3
2
3
28
2
2
4
4
2
3
3
2
1
23
1
1
2
4
2
3
3
1
3
20
1
2
2
2
2
2
2
2
1
16
3
2
3
3
4
3
2
2
3
25
2
2
2
2
4
1
1
2
2
18
1
2
2
1
3
2
3
2
2
18
2
0
4
4
4
2
3
3
3
25
2
2
4
3
4
2
3
3
2
25
17
14
27
27
35
17
26
23
17
21
224
9
14
4
7
19
8
8
5
8
4
IX
X
V
III
I
VII
II
IV
VIII
VI
information system in TQM and flexible computerintegrated manufacturing system are driven by excellent top management and in turn have salutary effect
on responsiveness of supply chain. The two CSFs,
rewards and incentives and Health management of
employees, have bi-directional relationship with excellent top management. Continuous improvements in the
process and adequate and poka-yoke quality also have
bi-directional interactions. Reduction in energy consumption and waste minimisation drives the continuous improvement process.
The interpretive ranking model shown in Figure 3
depicts the ranks of selected CSFs w.r.t. performance
areas. The CSF, reduction in energy consumption and
waste minimisation received the highest ranking by
IRP. This clearly indicates that for any company who
needs to portray itself as WCM firm need to be a green
company. The CSFs in descending order of rankings
are: adequate and poka-yoke quality, excellent top
management, continuous improvement in the process,
use of information system in TQM, responsiveness of
supply chain, flexible computer-integrated manufacturing system, rewards and incentives, satisfaction of
internal customers and health management of
employees.
As can be seen from Table 8, reduction in energy
consumption and waste minimisation dominates excellent top management w.r.t. four performance areas,
namely market presence, financial profitability, company must portray a green and environmental friendly
image and optimal usage of resources.
In ISM model, excellent top management has
emerged as the key driving factor. While in IRP,
reduction in energy consumption and waste minimisation has received the highest rank.
8. Conclusions
In this research study, an attempt has been made to
identify the major CSFs that facilitate successful
implementation of WCM practices in India. The
study gives a comprehensive perspective regarding
CSFs of WCM and can act as ready reckoner for the
practitioners.
This is the first study that focuses on two modelling
procedures based on interpretive logic. The major
strengths of IRP are follows (1) it does not require the
information about the extent of dominance, which is
difficult to be interpreted and generally remains
questionable in terms of validity and (2) it is easier to
measure and compare the impact of interactions rather
than variables in abstract sense. Some of the drawbacks of IRP are as follows (1) the results are not free
from bias due to interpretive and judgemental processes (2) all the variables are assigned equal weights
and the interpretation of matrix of size beyond 10 10
is difficult due to non-availability of software for the
purpose.
IRP is a novel ranking tool and can be applied to
rank relevant factors in the light of their performance
outcomes as against ISM which limits itself to
considering those factors only. Thus, if both ISM
11
and IRP are used for the same industry, IRP calls for
more information and yields qualitatively better and
realistic results than ISM. But in problems involving
a large number of variables, IRP will find its complexity level higher than ISM. Hence, the areas/industries
where the decision makers cannot afford going specific
or their performance requirements are not specific,
they can use ISM model otherwise IRP model will be
better choice.
12
A. Haleem et al.
Acknowledgements
The authors extend their indebtedness to the anonymous
reviewers for their useful comments and suggestions that
helped in improving the quality of this study. The authors are
also grateful to Akshay Vrat Gautam, Nitin Sengar, Rahul
Gupta, Rakesh Kumar Meena, Shivam Gupta and Vinay
Tomar for their contribution.
Notes on contributors
Dr. Abid Haleem is a Professor in the
Department
of
Mechanical
Engineering
in
Faculty
of
Engineering and Technology, Jamia
Millia Islamia, India. He is also on the
Board
of
Telecommunications
Consultants of India Ltd. as an
independent director. He obtained
his PhD from the Department of
Mechanical Engineering, IIT, Delhi. His research interests
include Policy Planning, Flexible Manufacturing Systems,
Business Process Re-engineering, e-Governance, Industrial
Engineering,
Operations
Management,
Technology
Management,
Creative
Problem
Solving,
Systems
Modelling, Supply Chain Management, Green Practices
and Supply Chain Management.
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