Exploring the phenomenon of company-specific Production Systems: One-best-way or own-best-way?

This explorative study investigates the phenomenon of the company-specific production system (XPS). It has been a strong and recent trend across many manufacturing industries to develop and deploy such corporate improvement programmes. Five propositions regarding the uniqueness of XPSs are derived from universalistic versus contingent perspectives on improvement programmes. The main XPS principles of thirty renowned multinationals are analysed for similarities and differences. In conclusion, XPSs largely represent variants of the same in content. They represent an own-best-way approach to the one-best-way paradigm. Even though a tight relationship to the Toyota Production System (TPS) and lean production is established, the findings raise a red flag that XPSs might suffer under a too rigid, path-dependent development process from what has become an overly technical understanding of the TPS. This study also questions whether modern manufacturers have sufficiently integrated other essential elements of modern operations such as the use of ERP, automation and real-time response technologies in their XPSs. These findings have direct implications for practitioners and provide interesting opportunities for further research.