Mitsuhiro FUKUZAWA

The present article explores the flow-oriented and routine-based concept of organizational capability in manufacturing and proposes a practical method of measuring it by using the flow map of material and information (FMMI), including the value stream map (VSM). The environment surrounding manufacturing companies is becoming increasingly turbulent, making it increasingly difficult for them to survive and prosper. For example, global companies face challenges on multiple fronts such as international trade tensions, pandemic lockdowns, and competitive challenges from firms in emerging economies. In addition, in digital markets, supply chain transparency and resiliency require visualizing the flow of materials and information across a wide range of global activities. Business activities are conceived as flows of design and control information from across functions for value creation and transfer. A high level of value creation is built on the excellence of vital function. In this context, this study aims to identify key characteristics of high-performance firms. In particular, the flow map of material and information (FMMI) assumes simultaneous execution of capability-building and capability-measuring. This research team reports the series of workshops and survey results based on (1) the work of the industry-university consortium, (2) the collaborative learning process through trust and information sharing among participating companies, (3) sharing improvement activities, and (4) identifying areas of poor flow (issues for each company). In addition, several selected case studies of Japanese firms highlight the impact of using FMMI for improving multiple performance outcomes and measuring their manufacturing capabilities at the same time. The lessons and implications are discussed.

<jats:p>This study aimed to reveal the actual state of Japanese firms’ logistics outsourcing, and examine their relationship with LSPs. This study addressed the following issues by conducting a case study of six leading manufacturing firms. First, it clarified the characteristics of Japanese-style logistics outsourcing as: the outsourcing of the total activities, the consigning to a single LSP, and the development of advanced information systems. Moreover, it examined the logistics outsourcing performance from a sustainable perspective, and concluded that Japanese-style logistics management enables firms to achieve high performance in all the economic, environmental, and social dimensions. Second, this study confirms that the traditional Japanese business practice of long-term partnerships is still maintained in logistics outsourcing management. Third, this study also explored how long-term partnerships create sustainable competitive advantages. Finally, based on these findings, a theoretical framework illustrating the relationship between Japanese-style logistics outsourcing and firms’ sustainable competitive advantage is presented. Our findings may encourage companies to develop a long-term partnership with their logistics service providers, and to put environmental and social indicators into their KPI system to achieve a sustainable competitive advantage by balancing the economy, environment, and society.</jats:p>

<jats:p>This study investigates the objectives, approval process, decision criteria, metrics, and performance of the Internet of Things (IoT) system investment in four Japanese manufacturing firms through exploratory case analysis. This study conducted semi-structured interviews and several workshops with practitioners to collect, confirm, supplement, and verify the interviews data and the researcher’s interpretations. The study clarifies the actual status of investment activities in IoT systems and the essential common issues. In addition, this study shows that IoT investments in Japanese companies improve production activities’ efficiency. However, collaboration among divisions and departments other than production is not sufficient. This paper also contributes to constructing an analytical framework for comprehensively clarifying IT system investment decision-making and investment effects. These findings will be one of the reference points of the IoT system investment project and will contribute to the recent digital transformation movement in many manufacturing firms.</jats:p>

In extant studies regarding value stream mapping (VSM) and cross-functional integration in Western journals, there is a deviation from the essence of lean production and flow management, which aim at overall optimization by focusing on the flow of the entire value chain as well as material and information flow, and empirical studies based on the actual state of material and information flow have not been sufficiently conducted. To proceed with the overall optimization of the material and information flow in the supply and value chain—with progress in globalization and digitalization as seen in recent Japanese manufacturing companies—it is necessary to return to basics to grasp the “actual state of the flow” by focusing on the entire material and information flow and to conduct empirical studies on factors contributing to these flows.