The Sand Cone Model: Cost Saving or Not

Lee Jesic, Martin Eley

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Traditional management theory for achieving manufacturing excellence relied on trade-off theory (Ferdows and de Meyer, 1990) where without some system slack, undertaking improvements on one of four basic manufacturing capabilities, quality, dependability, speed and cost is detrimental to one or all other capabilities. They suggest one capability is built upon another and to achieve cost efficiency, changes are implemented in specific areas in a sequential order. With mixed opinions on its validity, a real-world results measurement provides valuable true data analysis from key performance indicators (KPIs) implemented, being based in a medium sized company having implemented KPIs for each capability. The aim was to determine whether a medium sized manufacturing company can save money following Ferdows and De Meyer (1990) Sand Cone Model without necessarily following the specified sequence. Results do not indicate the Model necessarily saves money in such a company; the particular industry having greater influence on results.
    Original languageEnglish
    Title of host publicationBritish Academy of Management 2018 Conference Proceedings
    PublisherBritish Academy of Management
    ISBN (Print)9780995641310
    Publication statusPublished (VoR) - 31 Dec 2018

    Keywords

    • Sand-Cone
    • Cost saving
    • Manufacturing
    • Efficiency

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