Process of Validation of Complex Conceptual Models

after Soft Systems

by Joao Vilas-Boas*

_________________

A theoretically validated model to position a discussion about Production Planning and

Control (PPC) within a rich organisational context was found as the main outcome of
the process. Then, ten rival frameworks were described, as representing other systems
thinking, to compare the conceptual model, by following the Soft Systems Methodology
(SSM). Analysed dimensions concerned the gap, purpose, scope and expected results,
research method, validation of results, models and outcomes and, conclusions. An
appreciation of other researchers’ work was provided, promoting the improvement of
PPC decision-making. In addition, guidance to operationalise stage 4b of SSM was
presented. To sum up, science methods might help entrepreneurs to learn more robust
processes to deal with complex corporate structuring, and so, to address some
determinants of both organizational behaviour and effective management. In this way,
corporations may be offered more credible vehicles for both intra- and
entrepreneurship, providing safer bridges to jump over boundaries.

_________________

Introduction

From Validity to Better Decision-Making across Boundaries

Validity is a research demand that is difficult to assure, especially in messy and

complex unstructured situations. In addition, its level of difficulty increases, when

qualitative research is added. This paper aims at reporting the specific validation of a

conceptual model previously deducted by the author (Silva 2002: 4, 137, 174). This

framework positioned the discussion concerning the relevance of Production Planning

and Control (PPC) procedures within a rich organisational context after several different

worldviews – the Weltanschauungen (Checkland and Poulter 2006: 6).

*
Joao Vilas-Boas is an assistant professor of technology and operations management at the ISCTE –
Lisbon University Institute. His research interests include: structure and design of manufacturing systems;
organisational structuring and business processes redesign; business and manufacturing strategies;
intervention, innovation and change programmes; Soft Systems Methodology; strategic planning and
structured design of information systems.
Address correspondence to: Joao Vilas-Boas, ISCTE – Lisbon University Institute, Departamento de
Ciencias de Gestao, 1649-026 Lisbon, Portugal. Tel: +351 217 903 403. E-mail: jmvbs@iscte.pt

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 The objective was to show that the methods of science could and should help to

validate a construct and so, getting a more robust contribution to the knowledge.

Therefore, the concept of validity is understood twofold, as follows: i) what findings

appear to be about, is what they ‘really’ are about? And, ii) the relationships in findings

should also be verified for truth (Robson 1995: 68).

The practical contribution of construct validity under the guidance of stage 4 of the

Soft Systems Methodology (SSM) is about getting models that are more defensible than

others, with regard to inconsistency, inadequacies, inclusion of the critical components

whose absence or inefficiency is crucial to the existence of the perceived problem and,

completeness (Checkland 1994: 176). In this case, the development of a credible audit

tool was targeted, later on.

To sum up, this paper presented an instance of the use of the validation concept in

order to promote the discussion around the subject – development of a model to find

relevant PPC procedures – under the umbrella of stage 4b of SSM. It is argued for that

the validated model might point out significant and better-defined ways to sort out

practitioners problems, improving the quality of decision-making in the studied domain.

Consequently, entrepreneurs may learn more robust processes to deal with corporate

structuring, and so, to address some determinants of both organizational behaviour and

effective management. In this way, corporations may be offered more credible vehicles

for both intra- and entrepreneurship, providing safer bridges to jump over boundaries.

Model Validation against Other Systems Thinking

Stage 4b of Soft Systems Methodology establishes that the developed conceptual

model should also be examined for validity in terms of other systems thinking that the

researcher finds significant. Thus, ten relevant approaches to the ‘assessment of the PPC

systems (PPCS) success’ were purposefully selected for the main test. Moreover, other

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authors might be included in the testing process that follows, whenever their remarks

were found as relevant contributors.

Later on, these rival models were summarised with regard to the following

dimensions: research gap, purpose of the investigation, expected results, research

method, results validation, developed model and research outcomes and, main research

conclusion. These meaningful categories were found and derived from cross-analysing

the chosen approaches as depicted in Table 3 to Table 6 – labelled A… to …J.

Then, the categorised data were cross-checked with the conceptual model developed

in previous research (vide Silva 2002, for details) and further discussed, in order to

promote its validation. The summary of the findings is also depicted in Table 1 and

Table 2.

This paper presents the validation exercise in two sections: research definition and

research design. Each section addressed the previously mentioned categories starting by

summarising the main findings of the rival frameworks. Then, the conceptual model

validation is attempted by discussing its similarities, contrasts and completeness with

regard to the rival approaches.

Summary and Discussion of Research Definition Dimensions

Summary of the Gaps (Table 3 to Table 6)

Lack of Satisfaction. The expenditure of a large amount of money (B in Table 3), put

together with not truly effective computer-based implementation and operation of

Manufacturing Control Systems (MCS) (B) has resulted into increasing dissatisfaction

of users with their Computer-Aided Production Management (CAPM) (F). Some have

blamed the deficiencies of the commercially available CAPM for the lack of success

(F). To sum up, vendor’s predictions of improvement are rarely achieved in practice

(C).

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Common Approaches to PPC Assessment. Few efforts of evaluating and selecting PPC

packages have been done (H). Absence, informal or wrong measurements of the

performance of most of the Manufacturing Planning and Control Systems (MPCS)

modules is still usual (J). Most of the methodologies to assess CAPM focus on a

comparison with respect to best practice and require data that the company is unlikely to

have (C). Thus, there is a requirement for detailed understanding of the relationships

between performance measures, contributing variables and associated best practices (J).

Moreover, criticism about insufficiently validated models to conduct the

manufacturing strategy process effectively has also been carried out. These models

should assure consistency among the decision categories and between manufacturing

strategy and environment. Most of the frameworks make explicit a structural,

consistency requirement but miss both functional consistency and empirical testing (E).

In addition, many MPCS are based on a single philosophy executed by static methods of

planning and control that restrict flexibility and responsiveness. Finally, single view

modelling techniques were considered inadequate (G).

Holistic and Strategic Needs. There is a need of debate about the CAPM contribution to

the overall performance of the company (C) rather than only considering problems

associated with traditional financial performance measures (J). Many times, the

development of IT, production organisation, production control, production technology

and market has been unbalanced (A). Indeed, failure to consider all related factors is

common (B). Moreover, the effort with regard to the measurement of effectiveness and

efficiency of MPCS is still little, particularly, in relation to the strategic objectives (J).

Contingency and Situational Needs. Some production control systems have not been

related to production situations (A). For instance, factors linked to the industrial sector

have been ignored (H). In addition, most of the methodologies to assess CAPM ignore

4
different company types and their individual requirements (C). In fact, there is no best

PPCS for all instances. The best system for a firm is contingent upon a number of

factors particular to that organisation (D). Finally, it is difficult to make the right choice

of PPC software that should be applied to a specific manufacturing firm (H). Thus,

some researchers have argued that more standardisation of the PPC software would

make the choice process easier (H).

Discussion of the Gap (Table 1 and Table 2)

This research agrees with the trend that was found in the surveyed rival views

concerning the lack satisfaction with PPC performance as consequence of the

approaches undertaken which (i) are not independent from established interests, (ii)

promote the comparison with best practice (vide also Hill and Brook 1994) and, (iii)

which are missing relationships between performance results and the related causes.

However, it is the most committed approach (I) that looks more complete with regard to

the selected research design aspects (vide Table 2), despite most of the rival approaches

showing relevant evidence of being independent from software vendors.

On the other hand, the research disagrees with the type of relationships – that is

cause-effect – that is sometimes addressed either explicitly or implicitly by the other

researchers (for example J, H). It also disagrees with the allocation of failure

responsibilities to the commercially available computer-aided ‘solutions’ (F), despite,

many times, their operational performance not being the best, as studies from important

researchers have argued for, for example, Porter et al. (1996). Little et al. (2000)

advanced some causes to explain PPCS failure, which are found more plausible and that

are taken into consideration by the developed model in this research. These causes,

which are also explored by some of the rival models, concern the need for holistic,

strategic, contingent and situational approaches. In addition, the suggested increase of

5
the standardisation of the CAPM systems seems a positive move, in order to get a better

match with the needs of the related industrial vertical sub-sectors (H), despite the

needed customisation due to the individual PPC requirements both at the company and

SBU levels.

Finally, the research highlights the gap concerning integration. This gap was not

identified by some of the rival approaches, either explicitly or implicitly. By integration

it is meant the relationships of PPC with the other control procedures within the scope

of the business (I) and also, with the other design parameters (B, E). Moreover,

consistency has to be more than conceptual or structural (E, J). It should address the

functional aspects, that is implementation and operation as the proposed research

considered.

Summary of the Objectives and Purpose (Table 3 to Table 6)

Auditing Purpose. There is the need of a checklist to focus on what is required to

become more competitive and achieve world class performance (I). Thus, an audit

methodology to evaluate an installed CAPM should be designed, developed and tested

(C). It should provide a consistent means of assessing progress periodically (I) with

regard to both effectiveness and efficiency (C). This methodology should also provide

guidance to establish how existing structured techniques and tools can be used in an

integrated manner to analyse and design a manufacturing planning and control system

(G).

Conceptual Guidance. A methodology that helps user companies to specify and select a

CAPM system that fits the company present and future needs should be produced (F). It

should help to choose or develop PPCS for different production situations (A, B). Thus,

a contingency model should be designed to explain differences in the specifications for

PPCS across firms (D). This methodology might be involved with the formulation and

6
implementation of manufacturing strategy, viz., description, analysis and design of

production systems, in light of present and anticipated market demands (E). If PPC

software packages are required, the final stage should be the definition of a way for

selecting them. Some authors suggest expert system techniques to support this process

(H).

Effective Implementation and Operation. The methodology should also provide a set of

guiding principles to implement appropriate CAPM (F), in order to assist the effective

implementation and operation of MPCS (B). It should also improve the MPCS

operational performance by linking performance measures, practices and strategic

objectives (J).

Discussion of the Objectives and Purpose (Table 1 and Table 2)

This research is also in line with some of the rival views with regard to the need of

consistently and systematically developing and testing an audit tool to assess the

potential PPC performance (for example C, I, J). Thus, the developed model should

provide a set of guiding principles (F) to address the current and future conceptual

effectiveness of the PPC procedures, within the scope of the structured analysis and

design of the manufacturing system. In fact, the developed methodology should be able

to provide conceptual guidance for the specification of the PPC needs and also for the

eventual selection of a CAPM commercial application. However, it is not expected to

become a checklist for business success (I). In addition, operational efficiency is not

directly targeted despite being the legitimate object of other studies (for example I, J).

Finally, the effective implementation is linked to other issues than conceptual design as

above argued, for example the interdepartmental co-ordination or the objective

assessment of the need for individual MCS (B).

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 Moreover, this research disagrees from the views arguing for expert systems (H) or

another form of automated support to decision-making concerning the choice of a

software package, especially in the advanced stages of the selection process. However,

this could be acceptable for checking basic compatibilities between the production

system characteristics and the PPC features in the early stages (vide MacCarthy and

Fernandes 2000, for details).

Table 1 shows that there is a great research concern with the conceptual effectiveness

of PPC and with its related specification of requirements. However, there still is a

significant PPC performance mismatch. This might mean that this concern with the

research design has not covered all the relevant issues or that it did not cover some

issues sufficiently well. A further point is that there might be other significant

contributors to the PPC performance.

Summary of the Scope (Table 3 to Table 6)

Even, typical approaches close to best practice – for example the 4th edition of the

ABCD checklist – address a broader scope than only MRPII and DRP. This may also

include strategic and organisational issues, as follows: strategic planning processes,

people/team processes, total quality and continuous improvement processes and, other

planning and control processes (I).

Situational and Strategic Scope. Different manufacturing environments using different

types of control systems (B) stated in terms of investment in information processing

systems and organisational integrativeness are related to firm’s competitive strategy and

environment (D). In fact, there is a need to formulate and implement consistent strategy-

driven decisions on manufacturing, in order to achieve success in marketplace, that is

rapidly and reliably design, produce and deliver a wide range of low cost, high quality

products (E). Thus, dynamic environment, great pressure, a changing business

8
environment, continuously increasing global competition, growing product

customisation and time-based competition markets (G) should also be part of the scope

concerns. Thus, the overall assessment of the situation in the company (I) should be

considered part of the scope.

Organisational Scope. The functional characteristics of the physical production system

– for example layout and process flow – do not seem enough to determine production

management requirements (H). MPC are made up of factors and their related

interactions in the physical, decisional and informational domains (G) that are part of

the organisational structuring. Indeed, the critical importance of the infrastructure, of

policies, procedures and technology supporting practices has showed up as relevant. In

addition, the integration of humans and computers in the production management

system also includes social issues in the scope (F).

Functional Scope. Many times, generic MPCS models free from any framework,

applicable to a wide range of manufacturing systems are followed (C, J), for the purpose

of developing these methodologies. They are not constrained to any specific computer

architecture and the studied system does not even need to be computerised (C). These

models define generic processes, known as modules most of which applicable to all

manufacturing companies, although the way in which they are organised may not match

the functional organisation of the company (J). Some authors believe that any

methodology must include a software specification (F).

Discussion of the Scope (Table 1 and Table 2)

The developed conceptual model agrees with several rival views (for example B, E,

J), with regard to the support to the implementation stage, due to its broad business

orientation and strong relationship with the design of the organisational structure. As a

9
consequence, the organisational and inter-personal processes at play during the

implementation of the PPC procedures (Newell et al. 1991) are also considered relevant

to the scope.

In addition, PPC is an integrant part of the overall company performance. In fact,

even some traditional views, which used to be predominantly functionalist and so,

considerably reductionist (for example Dougherty 1981), have broaden the scope to

include strategic alignment (for example F, G, I). Thus, the choice to position PPC

within the organisational and business scopes changes the ‘problem’ nature because it

includes the need to deal with people, the integration of humans with computers, a

social dimension, policy definition, decision-making, contribution to the competitive

advantage, in addition to the strict specification of the system functionality and to the

IS/IT issues.

To sum up, some of the rival views, despite implicitly recognising a different

problem nature, have carried on sticking to typical hard systems concepts (for example

I, J) such as the cause-effect relationships, (for example J). Some significant differences

are that the conceptual model developed and presented in this research is strongly

supported on a methodology from a social sciences background, that is on the soft

systems methodology. Thus, it takes into consideration most of the richness coming

from the scope broadness, assumes relationships but not causal and, relies on a

qualitative approach and on a strong theoretical feed-forward mechanism. However, the

pursued methodology also accepts the usefulness of a detailed functional specification

to complete the developed conceptual model (J, F).

Summary of the Expected Results (Table 3 to Table 6)

Expected results are as follows:

• Comparing PPCS performance against established benchmarks (I); the

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 improvement of the MPCS can be critical to the whole organisation performance

and a source of competitive advantage (J); it should even motivate people to work

in a more effective manner (I);

• Determining parameters affecting MCS choice, implementation and operation

(B);

• Discussing which control concepts fit a given production situation; some existing

production control concepts are roughly allocated/related to production situations

(A);

• Designing a flexible method to set CAPM contribution to company overall

performance (C); successful PPCS must consistently reflect a firm’s competitive

strategy (D);

• Developing a generic validated model covering the prerequisites of completeness,

relevance and operationalisation for manufacturing strategy (E) may simplify the

manufacturing system and ease CAPM implementation (F);

• Expanding the role of a checklist as an industry standard for operational

performance measurement (I);

• Constructing a[n] [expert] system that gives as results the required PPC software

functions and the structure of the whole software package that these functions

belong to (H); develop the methodology to analyse and design an integrated

hybrid system of support tools capable of operating in a dynamic environment

supported by existing resources (G).

Discussion of the Expected Results (Table 1 and Table 2)

The outcomes expected from the designed conceptual model should be consistent

with the manufacturing strategy developed for the business, reflect the firm’s

competitive strategy, contribute to the overall performance of the company matching a

11
given production situation and so, fitting the determinants of the manufacturing system

(for example A, C, D). Thus, the parameters affecting not only PPC design, but also its

implementation and operation (Table 1) are discussed within the scope of organisational

structuring (E), as well as the findings concerning the relevance of the PPC procedures.

This is expected to be a significant innovative contribution of this research approach, if

compared with the rival views (Table 1).

Neither performance assessment against established benchmarks, nor setting industry

standards for operational measurement are expected results (I) from this investigation.

Expert systems development to select CAPM packages (H) is also outside the research

scope.

Summary and Discussion of Research Design Dimensions

Summary of Research Methods and Validation Actions (Table 3 to Table 6)

Most of the research methods employed in the surveyed investigations – that is seven

out of ten – were found based on prescriptive conceptual models mainly based on

literature (A, D, E, F, G, H and I). Two of the models were being predominantly

developed by exploratory approaches based on case studies (B and J). Finally, the last of

the investigated models presented a prescriptive basis smoothed by the inspection of a

wide variety of vendor systems (C).

The validation of the research is a more sensitive issue. Six out of the ten

investigations did mention case studies as the validation tool (A, B, D, E, G, I). One of

the models was validated through verbal presentations given in the four original case

studies. Thus, detailed reports from the field studies were analysed and, an overall

assessment of the findings was carried out (J). Eighteen valid replies to a questionnaire

from a survey were returned with opinions about other of the investigated models (C).

Other of the models does not mention any validation action at all (H). Finally, it is

12
expected that the practical use and application of the CAPM workbooks mentioned as

outcomes (F) will result into some form of framework validation.

Discussion of Research Methods and Validation Actions (Table 1 and Table 2)

The structuring of the problem situation approached by this research is based on an

exploratory investigation – carried out outside the scope of this work – on both the

researcher’s background and interest and, on a literature review. Thus, the conceptual

model was established on a predominantly prescriptive basis smoothed by a previous

exploratory view. In fact, most of the rival models are of a prescriptive nature (A, C, D,

E, F, G, H, I). So far, in a natural sciences paradigm, this would be the equivalent to a

hypothetico-deductive approach. However, a Popperian attempt to disprove the

hypotheses based on prediction fed by fresh data is not possible due to both complexity

and problem nature. Nevertheless, it is possible to find some misleading semantics (for

example Parnaby 1979; Westbrook 1995), such as: ‘to predict the production systems

performance unambiguously’ (Draaijer and Boer 1995).

The differentiating option to the majority of the rival models was to strictly follow up

a well-established methodology, that is the soft systems methodology. This resulted into

the discussion of the initial research question – that is ‘how can successful PPC

procedures be chosen?’ – within the scope of the manufacturing systems design taking

into consideration all the structure determinants (D), as well as, in choosing business as

the research unit of analysis.

In addition, the validation of the rival models was also found an opportunity for

significant improvement, especially with regard to the theoretical validation (vide Table

2). In fact, none of the rival models directly mentioned any type of specific theoretical

validation. Some of them even missed any kind of empirical validation (for example H,

F). The developed model in this research is theoretically and empirically validated by

13
addressing this gap, as follows: (i) by comparison with generic theories and models of

management (SSM ‘stage 4a’) (vide Vilas-Boas 2009a) and, now, by comparison with

other significant systems thinking (SSM ‘stage 4b’); and, (ii) by running a confirmatory

case study to apply and appreciate the usefulness of the developed enquiring tool as

sources of debate about change and of learning (Vilas-Boas 2009b).

Finally, it is explicitly assumed that the analyst has carried out an interpretive,

subjectivist and political exercise, during both the case study and the theoretical

validation. Moreover, the research pursues naturalistic views, assuming both non-

deterministic and non-programmable variables that do not relate by linear cause-effect

relationships.

Broad Outline of the Conclusions of the Investigations (Table 3 to Table 6)

In general, the developed models were judged positively by their designers, as

follows: (i) with some potential that ‘stylised typifications’ should test (A); (ii) useful

for objective assessment of the need for individual MCS (B); (iii) satisfactory, because

useful results relating to the appropriate behaviour of the installed CAPM could be

obtained (C); (iv) positively discriminatory between the system needs of firms within

the same industry, facing the same general environment and employing the same process

technology (D); (v) useful to pursue the implementation of consistent manufacturing

strategies both internal and externally (E); (vi) helpful, once it resulted in a workbook to

specify and select the appropriate software, which was supported by a SERC grant (F);

(vii) successfully including the features to be employed as a design tool of systems

operating in a dynamic environment, because of its positive testing in different

environments (G); (viii) valuable to those who plan to buy/develop and implement a

PPC package (H); (ix) successfully pointing out the way to the achievement of world

class (I); and, (x) successfully resulting into MPCS that are designed to co-ordinate the

14
execution of manufacturing activities to support customer requirements and strategic

objectives (J).

Discussion of the Conclusions of the Investigations (Table 1 and Table 2)

The positive evaluation that most of the researchers make of their own models

appear, at first sight, to be a matter of opinion not explicitly supported. In fact, even

when questionnaires were issued the results were not appreciated after the statistics

rules (C). Moreover, the addressing and explanation of the confirmatory case studies

was very humble. It should be mentioned that there might be more information

available about the rival approaches but not externally reported or even gathered by this

research. Nevertheless, research validation, as such an important issue, should have

been detailed mentioned in the papers analysed, some of them reporting seminal work.

Thus, the evaluation of the approaches is mostly left to deficient political arguing due to

the nature of problem and to a fragile methodological basis.

Moreover, the self-assessment exercises of the rival researches are usually related to

their initial purpose. However, some initial claims (vide Table 1) were mostly forgotten,

for example the implementation and the operational aspects concerning the strategic

process, in addition to the structural issues; the relationship between PPC and the other

control procedures within a holistic and integrated scope; or, the discussion of the role

of the IS/IT strategy within the strategic approach. In addition, other initial intentions

were softly or incompletely addressed, for example the contingency factors

(determinants of organisational structure); or, the validation of the research results.

Conclusions

A previously deducted conceptual model (Silva 2002: 4, 137, 174) was purposefully

compared with other systems thinking, in order to complete a theoretical validation

15
exercise (Vilas-Boas 2009a). Thus, ten significant rival frameworks were chosen,

described and analysed. These approaches were recognised as important as the soft

systems one, but they also were found contrastively different.

It is argued that this validation process after the stage 4b of SSM contributed to add

sufficiency to the necessary condition for finding relevant PPC procedures, which had

been previously checked in stage 4a (Vilas-Boas 2009a) – finding ‘true’ relationships.

As further research, the model usefulness should also be set against real-world activities

in other different contexts.

Finally, this exercise was expected to provide a contribution to the practitioner

because it appeared to have helped in structuring a complex situation by providing

credibility and trustworthiness to the conceptual model through its validation process.

The choice of the soft systems thinking methodological paradigm and its

operationalisation were relevant, updated and unusual contributions to the design of

enquiries concerning situations with significant social and political dimensions (Vilas-

Boas 2009c). In fact, there is a growing safety feeling that the proposed model is, now,

much closer to what it appeared to be than before this exercise.

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operational priorities in batch manufacturing”, Production planning and control,
6(4), 286-300.

18
Appendix
Table 1
Comparison of the research definitions of rival approaches
A B C D E F G H I J The conceptual model
Lack of satisfaction - X X - - X - - - - X
Common approaches to PPC assessment - X X X X X X X X X X
Holistic and strategic needs X X X X X X X - X X X
Gap

Contingency and situational needs X X X X X X X - - - X

Integrated X X - X X - - - X X X
Independent approaches X X X X X X X X - X X
Audit tool to assess the potential PPC performance - - X - - X X X X X X
Conceptual effectiveness of the PPC procedures X X X X X X X X - X X
Operational efficiency - X X - - - - - X X -
Purpose

Conceptual guidance
- Specification of PPC needs X X X X X X X X X X X
- Selection of commercial CAPM - - X - - X - X - - X
Checklist for business success - - - - - - - - X - -
Effective implementation - X - X X X - - X X X
Expert systems to support a package choice - - - - - - - X - - -
Research definition

Support to the conceptual stage of PPC X X X X X X X X X X X

Support to the implementation stage of PPC
- Organisational and inter-personal processes - X - X X - - - X X X
Support to the operational stage of PPC - - - - - - - - X X -
Overall company performance - X X X X X X - X X X
Strategic alignment - X X X X X X - X X X
Scope

Integrated X X - X X - - X X X X
‘Problem’ nature
- To deal with people - X - - X - - - X - X
- Integration of humans with computers - X - X X - - - X - X
- Social dimension, policy definition, decision-making - - - - X - - - - - X
- Contribution to the competitive advantage X X X X X X X - X X X
PPC detailed functionality - - X - - X X - X X -
IS/IT issues X X X X X X - - - - X
Conceptual model X X X X X X X X X X X
Conceptual model consistent with the firm strategy - X X X X X X - X X X
Expected outcomes

Discussion of the parameters affecting design

- Organisational structure - - - - X - - - - - X
- Production planning and control systems X X X X X X X X X X X
Discussion of the parameters affecting implementation - X - X X - - - X X X
Discussion of the parameters affecting operation - X - - - - - - X X X
PPC performance assessment against benchmarks - - X - - - X - X X -
Establishment of industry standards for operational performance measurement - - - - - - - - X X -
Development of expert systems to select CAPM packages - - - - - - - X - - -

19
 Table 2
Comparison of the research designs of rival approaches
A B C D E F G H I J The conceptual model
External environment X X X X X X X X X X X
Age and size - - - - - - - - - - X
Conceptual framework Technology X - - - X - - - - - X
Power and culture - - - - X - - - - - X
Conceptual model

Past patterns X X X X X - - - - - X
Business strategy
- Manufacturing strategy - - - - X X - - X X X
• Process - - X X X X X - X X X
• Key success factors (content) X X X X X X X X X X X
• Decision areas (content)
- IS/IT strategy - - X - - X X - - - X
Design parameters of the organisational structure (organisation theory) X - X X X - - - - - X
Propositions - X - X X - X - - X X
Enquiring tool to pursue auditing purposes - - X - - X X X X X X
Prescriptive models X - X X X X X - X - X
Exploratory case study(ies) - X X - - - - - - X X
Research methodology

Expert knowledge/inspection of vendor systems - - X - - - - X X X -

Research design

Using natural sciences approaches - - X - - - - - - - -

General issues

Sticking to hard systems concepts - - - - - X X X X X -

Business as unit of analysis - X X X X X X - X X X
Naturalistic views, i.e., both non-deterministic and non-programmable variables - X X X X - X - X X X
Cause-effect relationship X - - - - X - X - X -
Quantitative approach - - X X - - - - X - -
Qualitative approach X X X X X X X X X X X
Feed-forward mechanism - - - - X - - - X X X
Potential of transferability (external validity) X X X X X - X - X X X
Congruence: fit between contingency factors and design parameters - - - - - - - - - - X
Consistency between organisational design parameters & strategic decision categories - - - - X - - - - - X
Consistency between overall business strategy and manufacturing strategy - - - - X - - - X - X
Theoretical

Consistency between overall business strategy and IS/IT strategy - - - - - - - - - - X

Consistency between the manufacturing strategy and the other functional strategies - - - - - - X - X X X
Consistency between manufacturing strategy and the business environment - - X X X X X X X X X
Validation

Consistency between IS/IT strategy and the business environment - - - - - - X - X - X

Consistency between PPC and the other design parameters X X - - X - X - X X X
Functional consistency of PPC: support to implementation and operation - X - - X - X - X X X
Confirmatory case study(ies) X X - X X - X - - X X
Survey(s) and/or workbook(s) - - X - - ? - - X X -
Empirical

Comparison with best practice - - - - - X - X X X -

Interpretive, subjectivist and political synthesis of the analyst X X X X X ? X X X X X
Hermeneutic X X X X X ? X - - X X

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 Table 3
Rival approaches to find relevant PPC procedures (Part I/IV)
€ (A) Van Der Linden and Grünwald (1980)
Gap - Unbalanced development of IT, prod. organisation, prod. - Not truly effective computer-based implementation and - Need to debate CAPM contribution to the overall performance
control, prod. technology and market
- Production control is not related to production situations - Expenditure of large amount of money
Objective/ purpose - To help to choose & develop systems for production
control & material mgmt for different prod. situations
Scope - Limited to short-term control of the flow of goods,
excluding such issues such as capacity planning
Expected results - Discuss which control concepts fit given prod. situation - Parameters affecting MCS choice, implementation &
- Some existing production control concepts are roughly
allocated to production situations
Research method - Prescriptive model
Validation of results - Case study in N. V. Philips, but results are not reported
or even referred to
Models and outcomes - Typification of production situations
(i) Market: product specificity, demand regularity &
uncertainty, product life cycle
(ii) Technology: product complicacy, number of
processes per product
(iii) Production org.: internal co-ordination, diversity,
unit convergence, volume, price, added value
(iv) Control of a chain of production centres:
integration, supplier characteristics
- Typification of production control concepts
(i) Order generation for both customers & factory: on
stock/on order
(ii) Capacity allocation and sequence determination:
fixed/variable
(iii) Requirements planning: statistical/deterministic
- 3-D matrix to make an overall allocation of production
control concepts to different production situations
Conclusion - For general consideration, stylised typifications give
rough indications for practice & illustrate the method
(B) Kochhar and McGarrie (1992)
operation of MCS
- Fail to consider all related factors
- Assist MCS selection, effective implementation &
operation
- Different manufacturing environments using different - Wide range of manufacturing systems
types of control systems
operation
- Background study identifies list of parameters likely to - Prescriptive & exploratory; developed in collaboration with compa-
affect choice & prerequisites for success
- 7 case studies (interviews supported on questionnaire) - Qualitative rather than quantitative data
- Validation of results by field studies
- MCS depend very much on the following issues
• Internal considerations: products, manufacturing
processes, workforce and systems
• External considerations: market demand
• Manuf. systems complexity, which creates a MCS
need and can be used to assess the MCS
requirements
• Uncertainty parameters, which create a MCS need
and they may inhibit the effective implementation
of MCS
• Flexibility characteristics, which help to overcome
problems introduced by complexity and uncertainty
• Essential prerequisites for success, which are top
mgmt. commitment, education and training,
discipline, data accuracy and attitude to change
- Appropriate to effective implementation to follow a
MRPII structure to assess the MCS requirements
- The characteristics above identified can be used to
create a structured framework for objective assessment - Useful results relating to the appropriate behaviour of the installed
of the need for individual MCS
(C) Sitoh et al. (1998)
- Vendors predictions of improvem. are rarely achieved in practice
- Most of the methodologies to assess CAPM:
• Focus on a comparison with respect to best practice
• Require data that the company is unlikely to have
• Ignore different company types & their individual requirements
- Design, development & test of a audit methodology to evaluate an
installed CAPM, i.e., to establish its effectiveness & efficiency
- Not constrained to any specific computer architecture
- The assessed system need not to be computerised
- Generic CAPM, free from any framework
- Flexible method designed to establish the CAPM contribution to the
overall performance of the company
nies having difficulties with CAPM; inspection of vendor systems
- Three types of validity: content, criterion-related & construct
• No single criterion; operational cost reduction versus planning
variance are rivals
• Need of correlation between measures and criteria
• Valid explanations for identified problems
- Success is the contribution to overall sustainable competitiveness
- Validation by a survey with18 of responses
• 61% found it helpful to understand compet. position
• 40% found it helpful to set CAPM characteristics
• 33% found it helpful to set CAPM contribution
- Four stage audit tool
(i) Product mix, manufacturing & product characteristics
(ii) Database, decision support & transaction processing
characteristics
(iii) Competitive measures
(iv) Establish source of CAPM problems/inadequacy
- The proposed framework was found satisfactory
CAPM could be obtained
21
 Table 4
Rival approaches to find relevant PPC procedures (Part II/IV)
(D) Van Dierdonck and Miller (1981)
Gap - There is no best PPCS for all instances
- The best system for a firm is contingent upon a number
of factors particular to that organisation
Objective/ purpose - To present a contingency model designed to explain
aggregate differences in the specifications for PPCS
across firms
Scope - Specifications for a firm’s system, stated broadly in
terms of investment in information processing systems
and organisational integrativeness are related to that
firm’s competitive strategy and environment
Expected results - The model must reflect that successful PPCS must
consistently reflect a firm’s competitive strategy
Research method - Prescriptive model
- Model development inspired on companies that had
problems with their PPCS
Validation of results - An analysis of data from a limited sample of field cases,
and a panel of managers, provides insights into the
applicability of the concepts used in the model and its
potential usefulness
- Not quantitative, but subjective assessments by mgrs.
Models and outcomes - Derivation of production planning task, characterised by
amount of uncert., complexity & tolerance for slack
• Complexity & uncertainty = f (org. context, slack)
• Complexity: volume, diversity, repetitiveness,
interdependence
• Uncertainty: demand, supply, goal, production
• Slack: capacity, inventory, backlog
- Determination of the appropriate production control
systems characteristics given the task, i.e., degree of
information processing systems involvement (IPSI) &
organisation integrativeness/inter-depart. co-ordination
• IPSI = f (task complexity)
• Organisational integrativeness = f (task uncertainty)
- Characteristics of the design approach
• Competitive strategy is a determinant
• Includes strategic process concerns
• Identifies linkages between competitive strategy and
PPC but does not quantify them
Conclusion - It is possible to discriminate between the system needs of - External consistency is the most important goal for a
firms within the same industry, facing the same general
environment and employing the same process
technology. Failure in PPCS is due to the: (i) imposition
of technical solutions; (ii) not approaching technical and
organ. Simultaneously, PPC professionals must seek
ways of dealing with broader variety of problems.
Further research into strategy/ structure links. Explore
other contingent factors.
(E) Draaijer and Boer (1995)
- No validated model to conduct the manufacturing
strategy process effectively
- Existing frameworks are structural pursuing a
consistency requirement but missing the functional
issue and empirical testing
- Formulation & implementation of manuf. strategy, viz.,
description, analysis and design of production systems,
in light of present and anticipated market demands.
- Formulate & implement consistent strategy-driven deci
sions on manuf. in order to achieve success in market
place, i.e., design, produce & deliver a wide range of
low cost, high quality products rapidly & reliably
- (Re)design of manufacturing systems
- Generic validated model covering prerequisites of1 com-
pleteness, relevance & operationalisation for MS defin
- Prescriptive model
- Case studies
- Producing and discussing morphological
representations of the case studies
- Determine internal and external consistency and
discuss its role on marketplace success
- Development of a contingency model of organisation
including:
• Environment, i.e., technological advances,
competition, suppliers and customers
• Organisation structure, i.e., processes, technology,
people and equipment; structure; and, culture
• Strategy, that promotes the adaptation process
between environment and organisation structure
- Model structurally operationalised through a
morphological representation (vide Hill, 1993) that
links inputs, technologies, outputs, organisational
arrangements and environmental characteristics,
including market demands
- Further developments in validation should address the
accurate prediction of the production systems
performance
company to pursue
- Effective manuf. strategy requires that market-related
objectives are set and the evaluation of the change
impact on performance
- The framework is useful to pursue those objectives
(F) Maull and Childe (1993)
- Increasing dissatisfaction of users with their CAPM
- Lack of success due to deficiencies with commercially available
CAPM
- To produce a methodology that helps user companies to specify and
select a CAPM system that fits the company present and future needs
- Set of guiding principles to implement appropriate CAPM
- The critical importance of the infrastructure, policies, procedures and
technology as supporting practices showed up as relevant
- Any methodology must include a software specification
- Integration of humans and computers in the production mgmt. system
- CAPM implementation methodology for the electronics sector
- CAPM implement. can be eased if manuf. system is first simplified
- Prescriptive model
- Needs to check potential of transferability
- In future, the practical use and application of the CAPM workbooks,
which provide a step-by-step guide to the specification and selection
of the most appropriate CAPM system, may help to the validation of
the framework
- Top-down approach integrating strategic business & CAPM
requirements
- Bottom-up strategy enhancing functionality and effectiveness of
software solutions
- Top-down & bottom-up approaches are linked in a 4-stage process
• Strategic analysis: product families, product profitability, etc
• Manufacturing analysis: audit; structural & infrastructural factors
are matched against the OWs of product families in resource
impact analysis; generating potential solutions & selecting the
most appropriate for each product family; the output is the
appropriate resource & control configuration for each product
family
• CAPM requirements: specification development including tasks,
activities and constraints
• CAPM solution: appropriate CAPM configuration to match CAPM
tasks; qualifying hardware & software solutions must conform to
the constraints; adaptability through the use of tailored software
packages might be considered; adjusting the production mgmt
policies, procedures and practices might also be considered
- The software selection proposed by the methodology is enhanced by a
series of guidelines on the split of tasks between the human and the
computer elements of the CAPM.
- The methodology focuses initially on the simplification of the overall
control system and then on the specification and selection of an
appropriate software system.
22
 Table 5
Rival approaches to find relevant PPC procedures (Part III/IV)
(G) Banerjee et al. (1993)
Gap - Existing MPC are based on a single philosophy which is
executed by static methods of planning and control
restrict the flexibility and the responsiveness
- Inadequate single view modelling technique
Objective/ purpose - How existing structured techniques and tools can be used
in an integrated manner to analyse and design a
manufacturing planning and control system
Scope - Dynamic environ., great pressure, changing business
environ., continuously increasing global competition,
growing product custom., time-based competit. markets
- MPC are made up of factors and related interaction in the
physical, decisional and informational domains
Expected results - A methodology developed to analyse and design an
integrated hybrid system of support tools (MPC) capable
of operating in a dynamic environment supported by
existing resources
Research method - Prescriptive model
- Questionnaire to support business diagnosis
Validation of results - Industrial case studies
Models and outcomes - The following are the four stages of the methodology
• Diagnostic: business specification and business
analysis process; determines the unique enterprise
identity as the output; provides the basis for the
definition of technical requirements for MPC design
• Characterisation: detailed characterisation of the
business context; products are grouped into product
profiles according to market, process, design,
scheduling; variability analysis identifies the impact
of the disturbances on the system
• Customisation: an optimised MPC model is obtained
by combining the individual MPC models resulted
from the matching process of product profiles to the
different MPC component structures
• Concept design: A number of different tools is
employed to provide descriptions and representations
for different viewpoints; existing functional systems
are compared with the conceptual functional model
- Techniques used to model physical, decisional and
informational domains: IDEF0, DFDs and GRAI.
Conclusion - The results of testing the methodology in different
environments indicate that it has the necessary built in
features to be employed as a design tool of systems
operating in a dynamic environment
- The methodology only considers the PPC techniques as
support tools for decision making
(H) Tatsiopoulos and Mekras (1999)
- Difficult to choose right PPC to apply specific firm
- Lack of sufficient standardisation of PPC software
- Few efforts of evaluating and selecting PPC packages
- Factors linked to the industrial sector are ignored
- A method for selecting PPC software packages is
presented. This method is based on expert system
techniques
- Functional characteristics of the physical production
system – e.g., layout and process flow – are not enough
to determine production mgmt. requirements
- An expert system has been constructed that gives as
inference results the required PPC software functions
and the structure of the whole software package that
these functions belong to
- Expert knowledge concerning production systems and
PPC software is gathered and classified
- Logical rules are used to relate characteristics of the
production systems with functions of the PPC software
- Reductionist approach
- Typological knowledge base:
• Product oriented basic types – e.g., ETO, MTS –
mainly influence matls. mgmt. modules
• Process oriented basic types – e.g., discrete,
repetitive – mainly influence the shop floor control
and process management modules of PPC
• Set a functional menu based on the features of the
PPC modules
• Combine the production systems typology and the
generic PPC software knowledge bases
- Define the inference rules, which express the need for
the existence of certain features when a set of
characteristics is present in a production system
- The results include the whole architecture of the
modules and main menu functions that contain the
selected features. These are the required software
features that accompany the request for proposals sent
to the vendors.
The results can guide consulting experts, production
managers and PPC software developers
- The developed method can be valuable to those who
plan to buy/develop and implement a PPC package.
Such decisions are too complex to be faced by quan-
titative multi-criteria methods or simple guessing
- The ERP trend is clearly to follow vertical industry
solutions which is the basis of this expert system
(I) Souza (1993)
- Helping managers to find the right answers to: Are we doing the right
things? How well are we doing them? Are we on the right track to
world-class performance?
- Checklist to focus on what is required to become more competitive
and achieve world class performance
- Consistent means of assessing progress periodically
- The 4th edition of the ABCD checklist addresses strategic planning
processes, people/team processes, total quality and continuous
improvement processes and, planning and control processes, not only
MRPII and DRP
- Overall assessment of the situation in the company
- Comparing performance against established benchmarks
- Motivating people to work in a more effective manner
- To expand the role of the checklist as an industry standard for
operational performance measurement
- Prescriptive model
- Expert knowledge
- Quantitative questionnaire with a qualitative overview
- Collection of the experiences of people from hundreds of companies
compiled over a period of more than fifteen years; field tests
- Strategic planning: commitment to excellence; business strategy;
benchmarking; sustainable competitive advantage; ongoing formal
strategic planning; congruence to strategy; business planning;
generation of product costs
- People: commitment to excellence; culture; trust; teamwork;
employment continuity; educat. & training; work design; congruence
- TQC & continuous improvement: commit. to excellence; top mgmt
leadership; customer focus & partnerships; waste elimination; routine
use of TQC; required resources & facilities; MTO; supplier partner-
ships; procurement; Kanban; velocity; accounting simplification; TQC
& JIT use; teamwork; educat. & training; work design; employm.
continuity; company perf.; set/achieve quality goals
- NPD processes: commitment to excellence; multi-functional NPD
teams; early team involvement; customer requirements; decrease time-
to-market; preferred parts, materials & processes; education & training
(E&T); integration of NPD & PPC; change control
- Planning & control processes: commit. to excellence; operations, sales
& financial planning, reporting & measurement; what-if; forecasting;
sales plans; integrated order entry & promising; MPS; planning &
control of mtrls., suppliers & capacity; customer service; perform. of
sales & production plans, MPS, schedule & supplier delivery;
accuracy of BOM, inventory record & routing; E&T; DRP
- The ABCD checklist enables the achievement of world class
- The recommended performance improvement process requires
• To assess current status; establish goals and objectives; tailor the
checklist to the company’s immediate needs; develop action plans;
measure progress; conduct monthly management reviews
23
 Table 6
Rival approaches to find relevant PPC procedures (Part IV/IV)
(J) Davies et al. (1996); Kochhar et al. (1997)

Gap - Requirement for detailed understanding of the relationships between performance measures, contributing variables and associated best practices
- Problems associated with traditional financial performance measures
- Little measurement of effectiveness & efficiency of MPCS, particularly, in relation to the strategic objectives
- Absence, informal or wrong measurements of the performance of most of the MPCS modules
Objective/ purpose - To improve operational performance through the MPCS by linking measures of performance, practices and strategic objectives
Scope - A generic MPCS model is followed. It defines generic processes, known as modules most of which applicable to all manufacturing companies although the way in which they are organised
may not match the functional organisation of the company
Expected results - Improvement of the MPCS. They can be critical to the performance of the whole organisation and a source of competitive advantage
Research method - Exploratory field studies: identify measures, priorities, actual values, critical issues, causal relationships, data collection difficulties/cost, effect on performance indicators, improvement action
assessment, confirm best practices
- Expert knowledge
Validation of results - Verbal presentations given in the four original case studies
• Analysis of each of the detailed reports from the field studies and, overall assessment of the findings
Models and outcomes - Indication of the appropriate measures and practices and the full effects, both desirable and undesirable aspects, of taking action on a specific area of performance
• From the organisation’s top level strategic objectives, objectives for each model of the MPC system is defined, with measures of performance implemented to support these objectives
• Variables and practices affecting these measures are identified, as well as the effects of implementing the practices and manipulating the variables on the desired, and other, measures of
performance.
- The relationships between the identified measures of performance, variables and practices provide information on the full effects of taking action intended to improve a specific area of
performance
Conclusion - Strategic objectives can be developed throughout the organisation and focused on the areas that can satisfy them. This has particular importance within MPCS as they are designed to co-
ordinate the execution of manufacturing activities to support customer requirements and strategic objectives
- Many MPCS are simply no more than transaction processing systems
- There is little understanding of cause and effect relationships. Further research is required to contribute to the integration of overall and sustainable performance

24