The forest products industry has an opportunity to reduce energy costs using energy management practices, thereby boosting its global competitiveness. Increasing manufacturing costs have contributed significantly to the decline of the forest products manufacturing industries in the U.S.; these increasing costs limit manufacturers' abilities to compete with their global competitors. U.S. companies are continually improving their products, processes, finances, and business practices to better compete with global marketplaces; however, they may not be seizing all of the opportunities available through more efficient energy consumption practices. By eliminating non-valued added activities, lean thinking is an example of one tool that may improve performance and reduce costs. A case study was conducted at a cabinet manufacturer in Virginia to examine the impact of lean thinking on the consumption of electricity in the manufacturing process. An energy management system was used to provide rapid feedback on electrical energy consumption for production operations. Significant changes were observed after implementing energy reduction practices identified by lean thinking tools.
PurposeThe purpose of this study is to develop a methodology to help manufacturers determine and rank key internal business processes based on critical success factors (CSF).Design/methodology/approachFirst, company CSF and key performance measures were determined based on vision, mission and strategic objectives statements. Second, most important CSF were prioritized according to rating scores such as cost savings, necessary improvement, and own discretion using a balanced scoreboard procedure and a prioritization matrix. Third, CSF were related to internal business processes based on “strength of relationship” in order to define the most critical internal processes. Fourth, possible differences in the perception of CSF and strategic objectives among different management levels were compared. Fifth, the methodology was validated in three furniture manufacturing companies.FindingsIt was found that when a firm is missing vision or mission statements, it is imperative to define them before CSF can be identified. The CSF found through this case study were related to customer service, manufacturing management, quality and price of the products. The key internal business processes identified for the companies in this study were customer engagement, product operations and supply chain management. Conclusions show that better results were obtained when this methodology was applied to highest‐level of management.Originality/valueThis study has proved to be a useful tool to determine a strategy based on CSF and their relationship to internal business processes. Plant managers in our case studies were able to prioritize the critical internal business processes for their plants based on the most important CSF.
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