ACR Vol.

16 (1&2), 2008

RE-ENGINEERING OPERATIONAL PRACTICES AND PROCESSES TO IMPROVE THE CUSTOMER FOCUS OF A MARKETING ORGANIZATION

Mahmoud M. Yasin, Andrew J. Czuchry, Rani A. Kady

EXECUTIVE SUMMARY
The objective of this field study is to examine the applicability and potential advantages of pull operational practices in a mid-size manufacturing organization. The results derived based on this field study point to both operational gains and customer-related benefits which can be attributed to pull operational practices. Keywords: Re-engineering, Pull Practices, Mid-size Manufacturing, Marketing

INTRODUCTION
The framework depicted in Figure 1 was used to examine the current operational practices in a mid-size, welded stainless steel pipe firm. It was also used to identify areas of improvement in the existing operational system. Concepts related to the Theory of Constraints (TOC) and Business Re-engineering (BR) were used to modify the existing system. The modified system is designed to enhance operational efficiencies as well as the customer orientation of the firm. The studied firm (XYZ Company) has been in business for more than 50 years. The Company is currently using a push operational system to produce products for inventory. The purpose of this study was to determine the overall benefits to XYZ Company resulting from re-engineering its operational system from traditional manufacturing system to a pull system, driven by customer demand. In the process, the impact of changes in customer requirements on the production line was evaluated. Finally, the TOC principles were used to determine the potential of a competitive advantage to XYZ Company due to the modified operational system.

BACKGROUND Traditional concepts of effective manufacturing are based on mass production and are often referred to as a push system. In many such manufacturing environments when the output of a product doubles, the real value-added unit cost of manufacturing that product is reduced by a constant percentage (Pearson & Wisner, 1993). This improvement is often called a learning curve, or more precisely a price improvement curve. The objective of the push system is to efficiently use production resources. Such orientation, works well in industries where there is predictable high customer demand and quick product turnaround times such as electrical and automobiles industries. Altiok and Ranjan (1995) note that in a push system, the production schedules are generally based on the demand

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forecast. Under a push system, each stage runs at maximum capacity pushing material downstream. Kenward (1992) recognizes that a traditional push system is based on maximizing not only capacity, but also labor efficiency. In a push system, it is relatively easy to determine which operations are running at full capacity. Buffer stocks are often used to account for uncertainty in customers demand and supply variations. Although this work-in-process appears as an asset on the balance sheet, it is really a liability because the operation must incur costs to carry the work-in process.

FIGURE 1 Study Framework

Operational System

Customer Orientation and Marketing

Analysis of Existing System: Push System (Existing System) -Subsystems -Processes -System Constraints -Inputs -Outputs -Products Identify Areas of Improvemet

Performance Comparison

Utilize Business Re-engineering and Theory of Constraints. Modify Existing System

Pull System (Proposed System)

Krishnamurthy, Suri, and Vernon (2000) studied the performance of a flexible manufacturing line. They compared the throughput and average inventory characteristics under a pure push system with other manufacturing strategies.

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Results indicated that the pure push strategy has a higher throughput for a given level of inventory than other strategies. However, the push system advantages in terms of operational efficiency may be at the expense of the customer focus. Maximizing the throughput of individual manufacturing subprocesses often creates large work-inprocess inventories throughout the plant. The objective of the pull system is to link the production process to customer demands and to enable manufacturing firms to meet changes in demand with minimal production costs and minimal waste. Implementation of Just-inTime (JIT) techniques have been reported in the literature. Hancock and Zayko (1998) note that the implementation of JIT in the U.S. is proceeding slowly. However, JIT improves quality, increases productivity, and reduces delivery time. Using an empirical study, Wafa and Yasin (1998) examined the effective implementation of JIT philosophy in manufacturing environments. They identified factors that hinder JIT success. Such factors are technology, procedures, people, and organizational culture. They also suggest that for JIT to be successful, it has to be an organizational-wide philosophy where open communication between management and workers is the norm rather than the exception. Kupanhy (1995) states that practical implementation of JIT can be fruitful when implementation steps are reduced as may be the case when resources are limited. Although JIT is often implemented in manufacturing under the name of a pull system, Yasin, Wafa, and Small (2001) examined the effectiveness of JIT in the U.S. public sector. They investigated the relationships between organizational modification efforts prior to JIT implementation, problems encountered during implementation, and JIT success. Results support the finding that JIT has the potential to increase the operational efficiency, service quality, and organizational effectiveness of public sector organizations. A physicist by education, Eliyahu Goldratt, wrote The Goal, which leads the reader through scheduling concepts based upon the TOC. Manufacturing practices using The Goal have, in many cases, produced results that exceeded expectations. Holmen (1995) underlined eight assumptions to implement the TOC. Ruhl (1997) provided a detailed explanation of the TOC as well as a simple example of how profit can be maximized in a manufacturing environment by following the TOC principles. Since the first step in applying the TOC is to identify the constraint, Bushong and Talbott (1999) studied several manufacturing systems in applying the TOC. They found that for manufacturing concerns, the constraint is often, but not always, the time available on a certain machine or process. For companies that employ skilled workers and for many service organizations, the constraint is often the time of one or a few key employees. They also concluded that the use of the TOC as a management philosophy is a dynamic process. Once the constraint is identified, management should examine whether it can be relaxed or removed. If this is possible, some other factors may become new constraints. Therefore, the analysis should be revised conducted on a total system basis. Many researchers and managers have applied the TOC to a wide range of industries and products. Draman and Salhus (1998) significantly improved the production processes at a paint factory by implementing the TOC. Activity based costing (ABC) and TOC were integrated in order to analyze a manufacturing system (Cooper & Slagmulder, 1999). The researchers concluded that although the TOC is a tactical cost management technique and the ABC is a strategic-oriented method, both methods are complementary, cost management techniques. The TOC and ABC can also be used together to identify the best short-term and long-term product mixes. Ogan and Heitger (1999) studied the TOC in combination with JIT, total quality management (TQM), computer integrated manufacturing (CIM), electronic data interchange (EDI), and ABC. The authors concluded that this family of alternatives could help corporate managers evaluate new business practices that are best suited to their business models. It is important to note that specific practices have varying results depending on the nature of the business. Preventive maintenance programs, like many continuous improvement projects, are often selected using Pareto Analysis by focusing on the resource with the most unscheduled down time. However, Chakravorty and Atwater (1994) used the TOC to direct preventive maintenance. The study did not focus on reducing the cost like many other improvement programs but instead on increasing the level of manufacturing. The TOC has been also applied in a

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small business that requires skilled workers. In their study, Bushhong and Talbott (1999) added a quality aspect to the analysis. It has been found that the faster the production process, the more profitable the product. Hales and Savoie (1994) suggested a foundation for successful Business Process Re-engineering. The authors listed four key phases Business Re-engineering will pass through. These key phases are orientation, overall planning, detailed design, and implementation. McCloud (1994) introduced a business-reengineering program to improve throughput, customer relations and productivity, as well as to reduce operational costs. Business Re-engineering was also implemented in a supply chain management approach. Business Process Re-engineering has also been used to re-engineer manufacturing and service operational systems. Czuchry, Yasin, and Norris (2000) examined the applicability of process re-engineering in a healthcare operational environment. The intake process was analyzed systematically to identify process-related problems. In their study, the systematic redesign of the intake process resulted in performance improvements in terms of cost, quality, service, and timing. Cause-and-effect analysis (root cause analysis) uses diagramming techniques to identify the relationship between an effect and its causes. Cause-and-effect diagrams are also known as fishbone diagrams. Kerzner (1998) established six-step process to perform a cause-and-effect diagram. Root cause analysis has been applied in different industries. Eli (2001) applied root cause analysis in a petrochemical industry. This study was conducted by a team of qualified engineers using innovation techniques, established performance, and well-designed analysis procedures. Root cause analysis has also been implemented in the service industry. Beyea and Nicoll (1999) applied cause root analysis in healthcare. The results of their study provided information that could significantly contribute to the clinical decision-making process. Root cause analysis was used as a framework for analyzing financial and business performance (Grundy, 1997).

FIELD STUDY The business research conducted at XYZ Company falls under the category of applied research. The main goal of applied research is to answer questions about specific problems or to make decisions about a particular course of action or policy decision (Zikmund, 2000). In this study, the problem was clearly defined and was focused on the need to re-engineer the operational system to become more customer oriented. The technical tools of TOC, BR, and cause-and-effect analysis were used to conduct the analyses, draw conclusions, and make recommendations for improvements. Study Setting Dedicated to being a world-class producer of welded stainless steel pipe, XYZ Company has become America's leader in stainless steel piping. Since 1946, XYZ has produced welded stainless steel pipe for use in the chemical, petro-chemical, paper, and food processing industries as well as other industries requiring corrosion resistant piping. The Company is considered the largest producer of stainless steel welded pipe in the U.S.A. The Companys operations consist of several departments that work together to turn raw material in form of coils and sheets into welded pipes to be used in different applications. These departments are sales and customer satisfaction, purchasing, production control, manufacturing, quality control, pickling, inventory and shipping. The production process starts at the sales and customer satisfaction department where orders are received. Figure 2 illustrates the production process in further detail. Orders are classified as regular or special; the inventory has most, if not all, of the items required for regular orders which represent about 80 % of the total orders. On the other hand, special orders need special raw material, length, size, wall thickness, or x-ray test.

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FIGURE 2 Production Process Flow Chart

Sales and Customer Satisfaction

Raw material available

Yes

Production Control

Welding

No No Purchasing Design requirement for x-ray Yes Holding

Finishing No Straightening Annealing

Finishing Rework

X-Ray Pass Plasma cut Yes Pass No

Rework

Grinding

Shipping Final Inspection No Visual Sizing Beveling Yes

Hand Welding

Inventory

Marking

Yes

Pass

Eddy Test

Pickling

Raw material that is not available for a specific production job is requested through the purchasing department. Then, the production department schedules and manages every production job according to the due date which is usually determined by the customer. The production department also sets up the production lines based on the customer specifications such as length and diameter. The manufacturing process starts with loading metal sheets in the mills that roll and shape them to the desired size. Under high temperature, the pipes are welded, annealed, and cut to the required length. If required, the batch will be sent to the x-ray department where the pipes are tested. When defects are detected in the welded part, the pipe is forwarded to the rework area where grinding and hand welding processes are performed. Then the reworked material is sent back to the x-ray department. Pipes that pass the x-ray test are moved to the finishing unit where different operations such as straightening, off-line annealing, plasma cutting, sizing, and beveling are performed. After the finishing process, pipes are cleaned chemically in the pickling area where a final inspection is also run; pipes will be inspected by two different tests. In the visual test, an inspector checks length, size, wall thickness, heat number, and material type. The non-destructive electrical eddy test, which is only run on six-inch diameter pipe or less, examines the internal quality of the welds. Pipes that fail final inspection are sent back to the rework area or welding depending on the type of defect identified. Pipes that pass the quality inspection are transferred to the marking process so that important parameters such as, type of raw material, length, size, and heat number, can be

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marked on the pipe. Finally, pipes are stored in the inventory and classified according to certain categories, loaded on trucks, and shipped to the customer. The current production system at XYZ Company is a traditional push system as shown in Figure 2. Each department or work station receives its load work directly from the preceding station. Although the production flow starts at sales, XYZ Company currently makes pipes to fulfill customer orders, to maintain the inventory level, or to replace nonconforming parts for previous orders. Historical data reflecting the business results for the push system were analyzed. Findings regarding raw material, scheduling, production, sales and customer satisfaction, information flow, and inventory were discussed with management. Based upon these reviews with management collected data were determined to be accurate and representative of XYZ Companys production system. These data were also compared with initial results after the production system was modified to reflect the recommended improvements. The major steel producers in the United States are important suppliers to XYZ Company. Under the current push system, raw material is ordered in pounds rather than units. The production department determines order quantities to maintain inventory at certain levels. In spite of the huge volume of raw material, changes in customer requirements often cause production disruptions. Delivery and Inventory Practices The baseline production principle strives to minimize the production cost by running high volumes that will be sold or sent to inventory. Products are made to fill customer orders or to stock in inventory. As a result of running near production capacities, a dramatic increase in inventory level occurred. The root cause of these increases in inventory levels can be traced to the metrics of pounds run per man-hour which governs the current production strategy. Scheduling is also based on the same strategy. Although schedule changes, tooling changes, and machines cycling are less frequent, they are time consuming. Currently, small size pipes require 4 to 8 hours and 1 or 2 workers to change over, while large size pipes need 24 to 48 hours and 3 to 5 workers. Sales and Customer Satisfaction The current push system has a significant, often negative, impact on delivery date. Because the production decision is based on productivity and instant customer orders, many orders have been shipped late or even canceled resulting in a decrease in customer satisfaction and delivery credibility. Customer satisfaction is measured only by delivery date with production providing information to all other departments. XYZ Companys current information does not provide customer satisfaction feedback for analysis or corrective action. The inventory is divided into two main areas, based upon small and large pipe sizes. Due to the high volume production, inventory level is high. Inventory is annually evaluated in order to measure several factors such as turn over for small and large size products, inventory level, and asset value. Shipping depends directly on the availability of specified orders. Many orders have been shipped after their delivery date mainly because of production delays. The production flow chart in Figure 2 shows a holding area between the welding and the x-ray processes. Analysis of this process flow reveals that the x-ray process, which cannot keep up with other production processes, becomes the first bottleneck (constraint) in the system. The Vice President of Manufacturing at XYZ Company, states, About 10 percent of our production requires x-ray. Three main factors that are relevant to the x-ray department are customer requirements, applications, and design requirements. The x-ray process is part of the quality control department that examines pipes in two main categories; 1) the welded area examined by the x-ray process, 2) and other specifications such as size, length, heat number, and straightness, that are tested in final inspection. The x-ray process data were collected and analyzed resulting in Tables 1 and 2.

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TABLE 1 X-Ray Rejection in Footage per Defect Total footage x-rayed between April and August: 42100 Type of defect Rejection (ft) % of total Incomplete penetration 106 0.25% Porosity 365 0.87% Crack 0 0.00% Holes 0 0.00% Undercut 2,068 4.91% Slag 158 0.38% Burn through 27 0.06% Lack of fusion 113 0.27% Other 1,198 2.85% Total 4,035 9.59% TABLE 2 Cost and Productivity for the X-Ray Department Cost Labor cost Material cost Maintenance cost Productivity X-ray time Set up time Handling time 0.25 min./ft. 1.1 min./ft. 0.5 min./ft. $ 35/hr. $ 1.30/ft. $ 19000

To modify the current production system, meetings were held with company management. The entire system was studied and analyzed. During the course of these investigations XYZ Company recognized the need for improved communication between departments and created a new department called marketing and strategic planning to partially fill this need. The purpose of this new department is to link several departments together and to follow up on future plans in terms of investment and marketing. The department of marketing and strategic planning has developed a forecasting production model that integrates raw material, scheduling and production, sales, inventory and shipping. Study results are summarized below.

RESULTS Guided by the Framework shown in Figure 1, collected data were analyzed in terms of cost and productivity. The concepts of the pull system in conjunction with TOC and BR were used to evaluate and compare findings. Production constraints were studied using cause-and-effect analysis. Then the results of this study were used to design and recommend an improved production system. Anticipated benefits of the improved system include those discussed briefly below. Since the philosophy of JIT is to produce what is needed when it is needed, the modified system will be more customer oriented linking production to customer demands thereby meeting changes in demand with minimal production cost. Simplified scheduling also results. The operational efficiency of other departments improves leading to a positive impact on the performance of the entire system. Figure 3 presents the information

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flow chart in the modified system which shows the improved interface between departments. The modified production flow chart is illustrated in Figure 4. FIGURE 3 Information Flow Chart in the Modified System
S u p p lie r

R a w M a te ria l

S c h e d u lin g

P r o d u c tio n ( M a n u fa c tu rin g )

S a le s

M a rk e tin g a n d S tr a te g ic P la n n in g (F o re c a s tin g M o d e l)

X -R a y

S h ip p in g

In v e n to ry

M a rk in g

P ic k lin g

C u s to m e r

FIGURE 4 The Modified Production Flow Chart

W e ld in g M a rk e tin g a n d S tra te g ic P la n n in g S a le s a n d C u s to m e r S a tis fa c tio n Y es R a w m a te ria l a v a ila b le P ro d u c tio n C o n tro l No D e s ig n re q u ire m e n t fo r x -ra y Y es H o ld in g

F in is h in g No No S tra ig h te n in g P u rc h a s in g A n n e a lin g

F in is h in g R e w o rk

X -R a y P ass P la s m a c u t Y es P ass No
R e w o rk

G rin d in g

S h ip p in g F in a l In s p e c tio n No V is u a l S iz in g B e v e lin g Y es
H and W e ld in g

In v e n to ry

M a rk in g

Y es

P ass

Eddy T est

P ic k lin g

The improved system adds supplier and customer information to the current system. All departments are now linked through the forecasting model that manages the production process. Information flows backward, forward, and in a closed loop starting in shipping and ending in sales. As a result, communication between departments is improved and tracking customer, supplier and business information is simplified. Customers and suppliers now have a significant impact on strategic effectiveness. The modified production flow chart suggests that material flow is stimulated when a customer order pulls finished products from inventory. It also pulls workload upstream to produce more units and the process continues.

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Production is always triggered by demand from the next workstation. These modifications have already been implemented in raw material, scheduling, production, and inventory. Results of these improvements are beginning to be quantified. Although raw material is still ordered in pounds, the quantity ordered has dropped significantly. Through improved communication with raw material suppliers, XYZ Company provides a two-week scheduling plan which helps suppliers adjust their schedule accordingly. Another input to the raw material plan comes from customers who now provide XYZ Company with improved forecasts of their needs. The result of these two inputs makes the raw material department more efficient in fulfilling customer requirements. The two-week schedule plan accommodates more frequent schedule changes, tooling changes, and machines cycles. Information flow between raw material, scheduling, and production is based on kanban cards. The modified system and database allows the production department to measure additional parameters that help to evaluate production efficiency. These parameters are calendar asset utilization, operational asset utilization, welding speed efficiency, productivity and percent of scrap. Production is now designed to fulfill customer requirements and target inventory. The modified system has been partially implemented in the sales department. The sales department is now able to coordinate with customers to better forecast future customer requirements. Customer satisfaction is still measured using delivery date; however, suggestions have been made to gather other measures of customer satisfaction and to identify improved methods for anticipating future customer requirements. Operational goals have been established to reduce small size pipes inventory to about half its current level and to eliminate the inventory for large size pipes. The improved measurement system captures turn over, inventory level, and asset value. Based on the literature review and feedback from management, Table 3 summarizes comparisons between historical information and results obtained after implementing the modified system. The productivity analysis of the x-ray department for the period under study indicates that the efficiency of the xray process for that period is about 36.1 percent. Many causes can affect the productivity of the x-ray process. The six-step process established by Kerzner (1998) was used to analyze the causes of the x-ray process. Figure 5 represents the cause-and-effect diagram for the x-ray process. One of the main internal causes in delaying schedules is developing scratched films. The cost analysis for the tracked production job fits into Figure 6 which breaks down the costs of poor quality into re-x-ray and scratch films. The welding process is the main cause that affects the x-ray process. The high ratio of the rejected pipes reduces the throughput, slows the x-ray productivity, and adds more cost and reduces profitability. Cost and productivity analysis for defective pipes were also conducted. The rework cost analysis indicated that most of the rework cost is traceable to poor welding quality. Therefore, the welding process was analyzed further. Figure 7 addresses some of the causes of the welding quality in a cause-and-effect diagram. Using this analysis as a guide, management was able to take appropriate corrective action and implement process changes to improve welding quality and process throughout.

CONCLUSIONS AND RECOMMENDATIONS Based on the literature review, the field study, and the results of this study, the following conclusions, which have both theoretical and practical implications, are suggested: 1. This field study provided operational and customer related benefits. The quantity of raw material ordered has been reduced. The organization has enjoyed improved operational efficiency, and scheduling and production have become more responsive to customers requirements. Inventory level has dramatically declined resulting in reduced costs of having unnecessary inventoried items.

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2. 3.

4.

A pull orientation for the operation system tends to enhance the customer focus of the organization. Business Re-engineering, cause effect analysis, and principles of Theory of Constraints, were found to be of practical value when used appropriately. The primary benefits in the cited field study were improved operational efficiency and enhanced strategic effectiveness as measured by customer satisfaction. Applications of innovative managerial philosophies and tools such as Just-in-Time, Business Reengineering, and Theory of Constraints are not restricted to large firms. Small and mid-size firms can benefit from these applications without exhausting their resources.

The findings of this study have several managerial implications that are discussed briefly below. 1. Management, especially of small to medium sized manufacturing organizations, should analyze improvements in the context of the total system as opposed to piece-meal. This approach capitalizes on the synergy that exists among the subsystems, processes, and tasks of the proposed system while avoiding improvements in one area at the expense of reduced efficiency in another. Small to medium sized organizations may be especially venerable to this threat. A systematic approach to implementation is beneficial. In this context, a project management approach will prove to be very useful. Through out the implementation process, the need for documentation, training, and testing are underscored. In order to prepare the organization for the new operational environment consistent with the proposed system, management should use proven change management techniques and philosophies. Benchmarking and continuous improvement should be utilized to assess the performance of the implemented system to identify opportunities for additional learning and improvement.

2.

3. 4.

Finally, the results realized from this study suggest that other small to medium sized manufacturing businesses may benefit from a similar undertaking. Additional applied research of this type may serve to bridge the gap between theory and practice of operational management with mutually beneficial outcomes for industry and academia.

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TABLE 3 A Comparison Between Current and Modified System

Aspect Scheduling Push System Depends on production forecast Modified System Depends on information comes from different department Less stock Short Not available Not investigated Not investigated High More frequent High Short Forward, backward, and closed loop directions Less than 10% in average High Low Reduced Not changed Positive

Production Lead time Batch size Inspection Layout Empowerment Inventory turns Flexibility Set-up time Information flow Percent of reject Productivity Scrap Inventory level Welding speed Working attitude

Stock Long Large- batch and queue Sampling Functional Low Less frequent Low Long Forward direction 30% in average Low High Very high Below standard Negative

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FIGURE 5 Cause-and-Effect Diagram for the X-Ray Process

Cause

Machine

Method

Material
Vendor set up time Film delivery time Defective films Vendor

Broken down x-ray machine Poor maintenance Current Speed of x-ray machine Voltage Slow maintenance

Set up the film

Unclear specifications Reading the film

Effect

Developing scratched films Processor

Humidity Poor training Weather Shortage in people Poor motivation Rain

Delay in schedule

Broken down door Handling Bad attitude

Slow performance

Tool

Personnel

Environment

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FIGURE 6 Costs of Poor Quality

C o s ts o f P o o r Q u a lity

D e fe c tiv e P ip e s

P o o r x -ra y s c h ra tc h e d film s C ost

R e w o rk C o st

R e -x ra y C o s t

FIGURE 7 Cause-and-Effect Diagram for the Welding Process

Machine

Material

Wleding Speed Voltage

Gas Electrode Size Torch

Wire Diameter Steel Supplier

Current

Torch Diameter Gas Gas Cup Size

Wire Feed Speed

The Welding Quality

Scheduling

Temperature

Lack of Experience

Humidity

Personnel

Environment

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REFERENCES Altiok, T., & Ranjan, R. (1995). Multi-stage, pull-type production/inventory systems. IIE Transactions, 27, 190-200. Ardhaldjian, R., & Fahner, M. (1994, July). Using simulation in the business process re-engineering effort. Industrial Engineering, 60-61. Beyea, S., C., & Nicoll, L., H. (1999, October). When an adverse sentinel event is the cause for action. Aorn Journal, 70(4), 703-704. Bradley, P., Gooley, T., & Cooke, J. (2000, January 31). Study finds inventory turnover on the rise. Logistics management & distribution report, 39(1), 17. Burger, A. (2001). Root cause analysis. Retrieved March, 2002, from http://www.key3media.com/interop/atlanta2001/online_pre/downloads/interop_conf/C60_A_Burger.pdf Bushong, J.G., & Talbott, J. C. (1999). An application of the theory of constraints. The CPA Journal, 69(4), 53-55. Chakravorty, S. S., & Atwater, J. B. (1994). How theory of constraints can be used to direct preventive maintenance. Journal of Industrial Management, 36(6), 10-18. Cooper, R., & Slagmulder, R. (1999). Integrating activity-based costing and the theory of constraints. Management Accounting, February, 80(8). 20-22. Czuchry, A. J., Yasin, M. M., & Norris, J. (2000). An open system approach to process re-engineering in a healthcare operational environment. Health Marketing Quarterly, 17(3), 77-88. Draman, R. H., & Salhus, V. (1998, November-December). Painting a better process: Implementing the theory of constraints in the batch process industry. Industrial Management, 40(6), 4-7. Eli, G. (2001). Operating deflection shape analysis: A powerful tool to increase plant reliability. Hydrocarbon Processing, October, 80(10), 59-63. Goldratt, E. M., & Cox, J. (1992). The goal. Great Barrington, MA: The North River Press. Grundy, T. (1997, December). Management accounting for strategic performance. Management Accounting (British), 75(11), 63-64. Hales, H. L., & Savoie, B. J. (1994, September). Building a foundation for successful business process reengineering. Industrial Engineering, 26(9), 17-19. Hammer, M., & Champy, J. (1993). Re-engineering the corporation: A manifesto for business revolution. New York: Harper Business. Hancock, W. M., & Zayko, M. J. (1998, June, 30). Lean production: Implementation problems. IIE Solutions, 30(6), 38-43. Holmen, J. S. (1995, January). Its a matter of time: Activity-based costing and the theory of constraints can work together. Management accounting, 37-40. Juran, J. M. (1989). Juran on leadership for quality: An executive handbook. New York: The Free Press. Kenward, M. (1992). The fine art of mass production. New Scientist, 135(1830), 24-26. Kerzner, H. (1998). Project management: A systems approach to planning. New York: John Willy & Sons. Krishnamurthy, A., Suri, R., & Vernon, M. (2000). Push can perform better than pull for flexible manufacturing systems with multiple products. Retrieved February, 2002, from http://www.cs.wisc.edu/~vernon/papers/poems.00ierc.pdf Kupanhy, L. (1995, February). Classification of JIT techniques and their implications. Industrial Engineering, 6267. McCloud, J. (1994, June). Changing customer demands serve as impetus for BPR at Schlage Lock Co. Industrial Engineering, 26(6), 30-34. Ogan, P., & Heitger, L. (1999, March-April). Alphabet soup: Good for you or an indigestible stew? Business Horizons, 42(2), 61-70. Pearson, J. N., & Wisner, J. D. (1993, November/December). Using volume and economies of scale to benefit longterm productivity. Industrial Management, 13-16. Richman, E., & Zachary, W. (1994, March-April). Creating strategies for successful materials management. Industrial Management, 36(2), 24-29. Ruhl, J. M. (1997, January). Management constraints. The CPA Journal, 60-63. The American Production and Inventory Control Society. (2001) Retrieved February, 2002, from http://www.inventorysolutions.org/def_jit.htm

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Wafa, M. A., & Yasin, M. M. (1995). The effect of situational constraints on workforce performance and JIT implementation: An empirical study. International Journal of Computer Applications in Technology, 8(3/4), 139-144. Wafa, M. A., & Yasin, M. M. (1998). A conceptual framework for effective implementation of JIT: An empirical investigation. International Journal of Operations & Production Management, 18(11), 1111-1124. Yasin, M. M., Wafa, M. A., & Small, M., H. (2001). Just-in-time implementation in the public sector: An empirical examination. International Journal of Operations & Production Management, 21(9), 1195-1201. Zikmund, W. G. (2000). Business research methods. Orlando, FL: The Dryden Press. Zimmer, L. (2000). Manufacturing engineering: Lean design. Retrieved February, 2002, from http://www.mfgeng.com/lean.htm ____________________________________________ Mahmoud M. Yasin (mmyasin@etsu.edu) is Professor of Management at East Tennessee State University, P.O. Box 70625, Johnson City, TN 37614-0625. Andrew J. Czuchry (czuchry@etsu.edu) is Professor of Management and Technology and holder of the AFG Industries Chair of Excellence in Business and Technology at East Tennessee State University, P.O. Box 70619, Johnson City, TN 37614-0625. Rani A. Kady (rkady@odu.edu ) is currently an Assistant Professor in the Department of Engineering Management and Systems Engineering at Old Dominion University, 241 Kaufman Hall, Norfolk, VA, 23529.

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