The Sand Cone Model: Cost Saving or Not

Jesic, Lee and Eley, Martin The Sand Cone Model: Cost Saving or Not. In: British Academy of Management 2018 Conference Proceedings. British Academy of Management. (In Press)

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Abstract

Traditional management theory for achieving manufacturing excellence relied on trade-off theory (Ferdows and de Meyer, 1990) where without some system slack, undertaking improvements on one of four basic manufacturing capabilities, quality, dependability, speed and cost is detrimental to one or all other capabilities. They suggest one capability is built upon another and to achieve cost efficiency, changes are implemented in specific areas in a sequential order.
With mixed opinions on its validity, a real-world results measurement provides valuable true data analysis from key performance indicators (KPIs) implemented, being based in a medium sized company having implemented KPIs for each capability. The aim was to determine whether a medium sized manufacturing company can save money following Ferdows and De Meyer (1990) Sand Cone Model without necessarily following the specified sequence.
Results do not indicate the Model necessarily saves money in such a company; the particular industry having greater influence on results.

Item Type: Book Section
Subjects: G200 Operational Research
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Dept. Management, HR and Enterprise
Depositing User: Martin Eley
Date Deposited: 15 Aug 2018 08:40
Last Modified: 15 Aug 2018 08:40
URI: http://www.open-access.bcu.ac.uk/id/eprint/6238

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