The use of radio frequency identification (RFID) versus bar coding has been debated with little quantitative research about how to best use RFID's capabilities and when RFID is more advantageous. This article responds to that need by qualitatively and quantitatively analyzing how RFID facilitates increased traceability and control in manufacturing, which in turn enables the use of more lot splitting and smaller lot sizes. We develop insights about operating policies (RFID vs. bar-code tracking mechanisms, extent of lot splitting, and dispatching rules) and an operating condition (setup to processing time ratio) that affect the mean flow time and proportion of jobs tardy in a job shop. A simulation model is used to control factors in the experimental design and the output is evaluated using analysis of variance. The results show the following: (i) performance worsens when bar coding is used with extensive lot splitting, (ii) process changes such as extensive lot splitting may be required to justify RFID use instead of bar coding, (iii) the earliest operation due date dispatching rule offers an attractive alternative to other rules studied in previous lot splitting research, and (iv) the performance improvements with RFID and increased lot splitting are larger when the setup to processing time ratio is smaller. In a broader context, we fill a research void by quantitatively showing how RFID can be used as an advanced manufacturing technology that enables more factory automation and better performance along several dimensions. The article concludes by summarizing the results and identifying ideas for future research.

Purpose – The purpose of this paper is to develop insights about the psychological factors that contribute to lean’s success as a holistic and adaptive system. Design/methodology/approach – The authors use the best-selling book “Thinking, Fast and Slow” (TFAS) (2011) by Nobel-prize winner Daniel Kahneman to provide a familiar lens for readers who might not otherwise be familiar with the psychology theories that are used in this paper to study lean conceptually. With this approach, the paper sheds light on psychological factors that tie together many of the philosophies, principles and practices of lean. Findings – The paper shows how lean’s philosophies, principles and practices provide a synergistic and self-reinforcing system that drives employee thinking and actions. TFAS characterizes thought processes as “fast System 1 thinking” that relies on intuition and “slow System 2 thinking” that is more rational and logical. Lean psychology eliminates waste and adds customer value by supporting, enhancing and taking advantage of beneficial fast thinking and motivating and imposing appropriate slow thinking. Originality/value – The authors develop the concept of lean psychology to describe the relationship between psychology theories and lean. By applying lean psychology, organizations can go beyond superficially adopting a checklist of tools and techniques to more fully take advantage of lean and improve their operations performance.

No abstract