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The most comprehensive lists used to define WCM are presented by Schonberger (1986 and 1996). The first version o f Schonberger’s (1986) WCM lists consisted of 17 general principles. Schonberger’s (1996) version has 16 principles, but includes more detail o f the improvements/ aims appropriate for each o f the principles. Like his first version, Schonberger argues that WCM should begin with the recognition o f its customers and employees. He introduces sixteen principles known as “customer- focused-principles” or “principles-based management” for a firm to use to measure their attainment. A firm can rate themselves for each o f the 16 principles using a “zero-to-five-point” scale to determine whether they are achieving WCM or not. The areas o f measurement include management control, production planning, supply chain management, plant design, human resource management and quality management.

Many o f Schonberger’s (1996) ideas are similar to Total Quality Management and other WCM literature. For instance Crosby’s (1988; 1984) fourteen steps to quality management; Deming’s (1982) fourteen points of management and Wakao (1995) all have features in common with Schonberger (1996). However Schonberger’s (1996) model extends these frameworks through a step by step improvement scale for each principle. Implicit throughout Schonberger’s ideas (1996) is that the content is less important than the process. He provides nearly 20 short case studies to show how the principles can be used to improve various manufacturing processes.

His WCM model offers everything that is discussed by WCM literature including teaming up with customers (Grieco (1996), Shores (1994)), supplier’s relationship (Giffi et al. (1990), shop floor operations (Anderson Consulting (1995)), human resources (Morton (1994)), quality management (Oakland (1993), Todd (1995)), exploiting capacity (Hendry (1998)) and marketing issues. (Refer to Table 3.1). He argues that WCM management is not “management by the numbers, by financial metrics, by top-down numeric goal setting, ... the new replacement mode, which involves all employees, is managing the processes” (p. 91). He also suggests that value is created as companies adopt customer-focussed principles, such as “teaming up with customers, continual rapid improvement in what customers want, operating at close to the customer’s rate o f use, and aligning performance measures with what customers want” (Stimpert, 1997)).

For example, as shown in Table 3.1, Schonberger’s (1996) principles are also relevant to Oakland’s (1993) ideas on quality and Wakao’s (1995) ideas on the process improvement. Oakland (1993) claimed that the aim o f quality improvement is to meet customer requirements. Wakao (1995) defined process improvement as moving “a process toward an optimal or more stable one with investigations and analysis o f all factors o f the process, mostly, workers, machines, materials, and methods, which are regarded as the main factors o f a cause in quality fluctuation”.

Wakao (1995) claimed that quality improvement comprises various practices such as total productive maintenance, cross-functional teams, customer satisfaction, directed teams, statistical process control, automation, benchmarking, housekeeping and

human resources. Those ideas are very much relevant to Schonberger’s (1996) sixteen principles.

Table 3.1: The relevance o f other literature to Schonberger’s (1996) WCM ideas.

S ch o n b e rg e r(1996) C ategory

Other important literature relevant to this topic

Customer focus

Design

Operations

Human Resources Quality and Process Improvement Information for Operations and Control Capacity Issues Promotion/ Marketing

Grieco (1996); Defillipo (1997); Lau (1996); Hutchings and Knox (1995); Shores (1994); Oakland (1993); Crosby (1984,

1979); Deming (1982, 1986).

Abraham and Spencer (1998); Hendry (1998); Teague et al.

(1997); Jina et al. (1996); Todd (1994); Badore (1992). Hendry (1998); Howard et al. (1998); Handheld and Pannesi (1995); Huq et al. (1994); Gargeya et al. (1994); Spencer (1994), Giffi et al. (1990).

Hendry (1998); Morton (1994); Shores (1994); Todd (1994). Y usof et al. (2000); Flynn et al. (1997); Anderson Consulting (1995); Wakao (1995); Todd (1994); Drummond (1993); Oakland (1993); Imai (1991); Giffi et al. (1990); Crosby (1984, 1979); Deming (1982, 1986).

Hendry (1998); Morton (1994); Shores (1994); Kingsman (1993).

Hendry (1998); Gargeya et al. (1994).

McClenahan (1999); Hayes et al. (1988); Kingsman et al.

(1993); Heim et al. (1992).

“Customer-focussed, workers driven, data based continuous improvement” are the theme o f the Schonberger (1996) WCM model. Everyone in the organisation must play his/her part to achieve the principles. Workers are the source o f ideas and innovation. Their experience, knowledge, and co-operation have to be tied together to get the best ideas implemented in the organisation. The customer is the heart o f the

principles. All improvements made are to serve the customer better. This means that the company must always know how well its outputs are performing, in the eyes o f the customer, through measurement and feedback. It is also essential to know what determines the company performance and outputs. This includes continually upgrading operating resources: data, equipment, tools, space, for-sale items, supplies, and people. Schonberger’s (1996) sixteen principles are listed as below:

1. Team up with customer; organise by families o f customers or products (what customer buys or use);

2. Capture/use customer, competitive best practice information;

3. Dedicate to continual rapid improvement in quality, response time, flexibility and value;

4. Frontline employees involved in change and strategic planning - to achieve a unified purpose;

5. Cut to the few best components, operations and suppliers; 6. Cut flow time and distance, start-up/changeover times; 7. Operate close to customer’s rate o f use or demand;

8. Continually enhance human resources through cross-training, job and career-path rotation, and improvement in health, safety, and security;

9. Expand the variety of rewards, recognition, pay, and celebration - to match the expanded variety o f employee contributions;

10. Continually reduce variation and mishaps;

11. Frontline teams record and own process data at the workplace; 12. Control root causes to cut internal transactions and reporting; 13. Align performance measures with customer wants;

15. Seek simple, flexible, movable, low cost equipment in multiples; 16. Promote/ market/ sell every improvement.

The above sixteen principles are considered as one o f the most detailed lists to define WCM manufacturing. Unlike TQM and other WCM concepts, Schonberger (1996) provides more detailed advice through the “5-steps” scoring system for a company to measure its own performances. As this model was amongst the most comprehensive WCM models in the literature, it was taken as a starting point to develop a MTO model as explained in detail in Chapter 4. It could be argued that Schonberger’s (1996) model is designed as a tool for a consultant and that much o f the detail o f his model does not have the academic underpinning that is required in good research. However, as shown in Table 3.1 and discussed above, his ideas are related to those in the academic literature and his model is therefore considered to be an acceptable starting point for this research project.