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World-class manufacturing by Fiat. Comparison with Toyota Production System from a Strategic Management, Management Accounting, Operations Management and Performance Measurement dimension

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  • Andrea Chiarini
  • Emidia Vagnoni

Abstract

Toyota Production System (TPS) and the derived lean production have cast a shadow over the models of world-class manufacturing (WCM). Yet, some groups such as Fiat have reinvented WCM. Fiat’s WCM is quickly becoming a sort of alternative to TPS-lean production. By means of semi-structured interviews and a direct observation of the documentation of Fiat’s model, this research wants to find the theoretical elements that underpin the model. The methodology is mainly based on grounded theory. The theoretical elements were coded and classified within four dimensions: strategic management, management accounting, operations management and performance measurement system. The four dimensions and their elements were compared for the first time with the same dimensions of TPS-lean production. Fiat’s WCM seems to have a ‘grand strategy’ focused on quality and cost savings where quality must be reached with no trade-off with other strategies. Safety is pursued above all else and Fiat’s WCM cannot be implemented without this first achievement. A particular system called ‘cost deployment’ measures wastes and losses on processes. The performance measurement system is structured and fosters day-by-day management as well as computer-based management. Furthermore, the performance measurement system is based on a complex and formal auditing and benchmarking process.

Suggested Citation

  • Andrea Chiarini & Emidia Vagnoni, 2015. "World-class manufacturing by Fiat. Comparison with Toyota Production System from a Strategic Management, Management Accounting, Operations Management and Performance Measurement dimension," International Journal of Production Research, Taylor & Francis Journals, vol. 53(2), pages 590-606, January.
  • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:2:p:590-606
    DOI: 10.1080/00207543.2014.958596
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    Citations

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    Cited by:

    1. Wouters, Marc & Stecher, Julia, 2017. "Development of real-time product cost measurement: A case study in a medium-sized manufacturing company," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 235-244.
    2. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    3. Nathan C. Huizinga & Jonathan A. Davis & Fred Gerr & Nathan B. Fethke, 2019. "Association between Occupational Injury and Subsequent Employment Termination among Newly Hired Manufacturing Workers," IJERPH, MDPI, vol. 16(3), pages 1-12, February.
    4. Monica Molino & Claudio G. Cortese & Chiara Ghislieri, 2020. "The Promotion of Technology Acceptance and Work Engagement in Industry 4.0: From Personal Resources to Information and Training," IJERPH, MDPI, vol. 17(7), pages 1-15, April.
    5. Marina Dabic & Mario Orac & Tugrul U Daim, 2016. "Targeting sustainable competitiveness in Croatia by implementation of “20 Keys” methodology," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-26, December.
    6. Antonio Sartal & Josep Llach & Fernando León-Mateos, 2022. "“Do technologies really affect that much? exploring the potential of several industry 4.0 technologies in today’s lean manufacturing shop floors”," Operational Research, Springer, vol. 22(5), pages 6075-6106, November.
    7. Myrelid, Andreas & Olhager, Jan, 2019. "Hybrid manufacturing accounting in mixed process environments: A methodology and a case study," International Journal of Production Economics, Elsevier, vol. 210(C), pages 137-144.

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