On the Ethical Justification for the Use of Risk Acceptance Criteria

To protect people from hazards, the common safety regulation regime in many industries is based on the use of minimum standards formulated as risk acceptance or tolerability limits. The limits are seen as absolute, and in principle these should be met regardless of costs. The justification is ethical - people should not be exposed to a risk level exceeding certain limits. In this article, we discuss this approach to safety regulation and its justification. We argue that the use of such limits is based on some critical assumptions; that low accident risk has a value in itself, that risk can be accurately measured and the authorities specify the limits. However, these assumptions are not in general valid, and hence the justification of the approach can be questioned. In the article, we look closer into these issues, and we conclude that there is a need for rethinking this regulation approach - its ethical justification is not stronger than for alternative approaches. Essential for the analysis is the distinction between ethics of the mind and ethics of the consequences, which has several implications that are discussed.     

The value of information concept applied to data systems

Cost-benefit analysis has a considerable literature in which information systems have been patently ignored. This reflects the considerable difficulties of applying the theory to information systems, and the state-of-the art remains relatively as Koopmans described it some 19 years ago (1957). A bar to further development would appear to be the lack of an applicable value-of-information concept. This paper seeks to clarify the issues and provide a robust theoretical and data analysis framework that will cover most situations. The approach here is to separate explicitly the dimensions of cost from those of information benefit, and examine the implications. The Null Information Benefit condition emerges as a special theoretical case, but potentially a most important one in applications. This case together with the Pareto optimum defines a large class of such problems that can be handled by the decision criteria and data analysis techniques tabulated and discussed here. The selection of input data techniques defines the limits of later project justification and may be crucial to the political viability of the projects throughout its life. Finally, the general management vs information systems management relationships are discussed in terms of this situation.     

Analytical hierarchy process for justification of total productive maintenance

Total Productive Maintenance (TPM) has attracted the attention of industries all over the world. The perceptible impact of TPM lies in attaining the far-reaching productivity and quality standards. Attempts have been made to examine TPM for the feasibility in Indian industries. The present work describes a multiattribute decision model using analytical hierarchy process for the justification of TPM for Indian industries.     

Strategic planning in an age of uncertainty

Strategic planning and decision making in the face of uncertainty have always presented a serious challenge to top management, but the present scale of uncertainty is unprecedented. Decision makers used to be able to rely on the past to predict the trends of the future. Now they are increasingly being forced to make important decisions that depend upon highly uncertain external factors for which the past offers little guidance. In all areas of business and government, there is a vital need to understand and implement procedures that enable decision makers to deal more effectively with uncertainty for planning and allocating their organizations' resources.Because of differences in their social, political and economic environments, European and Japanese managers are today affected by many acute areas of uncertainty— such as industrial democracy, floating exchange rates, changing social and political values, growing environmental awareness, government regulation, technological change, pollution control regulation, energy cost, and raw material availability—earlier than their counterparts in the U.S.A. These uncertainties affect not only private sector manufacturing industries, but also financial and service industries as well as nationalized industries and government organizations.This article shows how ineffective methods of dealing with uncertainty can lead to serious mistakes with costly consequences. The cost of overconfidence and people's natural but futile tendency to ignore or to try to eliminate uncertainty is illustrated by the crises seen recently in the world steel and shipbuilding industries. The article then demonstrates how decision analysis procedures that focus directly on the major decision points in the strategic plan enable executives not only to include uncertainty directly in their strategic planning, but also to increase their understanding of the decision process and their ability to communicate the results to others.     

Development of an integrated information management model: A case of textile industry

For past two decades many organisations have tried to implement integrated information management systems for better production management based on co-ordination of information and therefore activities of different departments. Although Enterprise Resource Planning systems have been in the market for the past decade, many industries find it difficult to implement such systems due to the amount of work involved in streamlining the documentation, customisation and of high costs reported in implementation. An attempt is made through this paper to propose an integrated model, which can be easily understood by production personnel, with specific emphasis on the textile sector.     

Decision support flexible manufacturing systems

The justification of flexible manufacturing systems (FMS) is a topic that has gained a lot of attention due to the strategic effect it has on the competitive stature of industrial firms. The decision to convert to FMS should follow a pattern of feasibility assessments, cost/benefit analysis where consideration of issues such as increased quality, productivity and capability as well as tangible benefits takes place. Difficulties, however, arise in the modeling of the behavior of the proposed FMS. This paper introduces the design of a decision support framework that aids the strategic planner in simulating the performance of proposed FMS and in determining the parameters that affect the costs and benefits, tangible and intangible, of such a system. The decision support system (DSS) allows the user to use subjective evaluations of benefits accruing from intangible considerations of new product design, faster turnaround on design-to-market cycles and new marketing strategies in fragmented markets. The DSS enhances the examination of issues such as changing demand, varied tasks and routings, job and machine flexibility, etc. which affect costs and benefits. It performs these important functions by allowing for the development of scenarios that aid in the evaluation of the effect of the conversion from non-flexible to flexible manufacturing on the organization's financial position.     

Computerized corporate planning

Computerized Corporate Planning as defined in this study is: the use of the computer to simulate the effect of alternative strategies on achievement of corporate objectives; the capability of answering ‘What if?’ questions.

The increasing complexity of business firms operating in a rapidly changing environment has led many managers in recent years to consider the development of computerized corporate planning systems. This article is concerned with an in depth study of some 55 such installations in North America and Europe. The objective of this effort conducted during the period of June –November 1970, was to determine the state of the art, identify problems of installation, and project trends in the rapidly evolving use of computers in planning. Specific questions include:

What is the economic justification for these systems? How are they being used? Who is using them? Have results measured up to expectations? What are the costs? Are organizational problems incurred?     

自然垄断产业的规制政策研究

国家自然科学基金资助项目“自然垄断产业的规制政策研究”,提出了规模经济、范围经济和网络经济三位一体的“自然垄断新论”,可为制定自然垄断产业的规制政策提供更科学的理论依据。在此基础上,项目结合中国铁路、邮政等产业的规制实践分析研究了现实中存在的主要法律与政策问题。     

Is Corporate Social Responsibility in Japanese Firms at the Theoretically Derived Achievable Level? An Analysis of CSR Inefficiency Using a Stochastic Frontier Model

The purposes of this study are to investigate whether current corporate social responsibility (CSR) is at the theoretically derived achievable level (hereinafter referred to simply as achievable level), to introduce “CSR inefficiency” as the difference between actual and achievable levels of CSR, and to specify its determinants. We established that the achievable level of CSR activity is determined by a range of keiretsu group, government, sector, and resource factors, and choosing specific activities can affect the priority levels of social contributions. CSR inefficiency is affected by its own factors such as internal management, which are different from those of CSR activity. Our study suggests the importance of the differences between the achievable levels of CSR among firms. For example, firms in machinery, electrical equipment, public utilities, and service industries have greater inefficiency in environmental CSR than the other industries. Conversely, the achievable levels of construction and petroleum and gum industries for environmental CSR are higher. Service firms can achieve higher level of environmental CSR, although their emissions and wastes are not as large as those of manufacturing firms in general. In retail industries, the achievable level of environmental CSR is lowest among all industries, while those for labor issues and social contribution are as high as those of other industries. Public utilities have large CSR inefficiency compared with other industries, while construction, steel and nonferrous metals have small CSR inefficiency.     

Addressing Climate Change as an Emerging Risk to Infrastructure Systems

The consequences that climate change could have on infrastructure systems are potentially severe but highly uncertain. This should make risk analysis a natural framework for climate adaptation in infrastructure systems. However, many aspects of climate change, such as weak background knowledge and societal controversy, make it an emerging risk where traditional approaches for risk assessment and management cannot be confidently employed. A number of research developments aimed at addressing these issues have emerged in recent years, such as the development of probabilistic climate projections, climate services, and robust decision frameworks. However, additional research is needed to improve the suitability of these methods for infrastructure planning. In this perspective, we outline some of the challenges in addressing climate change risks to infrastructure and summarize new developments aimed at meeting these challenges. We end by highlighting needs for future research, many of which could be well‐served by expertise within the risk analysis community.     

Shifts of long run average cost curves: Theoretical and managerial implications

Economists have traditionally employed one of two alternative methods when analyzing economies of scale: The long run average cost curve (LRAC curve) and the production function. Only the production function concept, however, has been extended beyond a static framework for analysis of scale economies in a dynamic setting. This paper will extend the traditional, static LRAC curve concept by developing an appropriate dynamic framework. This framework will then be used to analyze the shifts of LRAC curves through time in three major American industries: steel making, cement manufacturing, and electric power generation.The empirical and theoretical topics explored in this study raise issues of both managerial and theoretical concern. These issues include: the relationship between economic plant life and plant size; the existence of scale biases in previous studies of scale economies and current depreciation practices; the accuracy and use of construction cost indexes; and the effects of technological change over extended periods of time. The dynamic framework developed in this study serves several useful purposes. For example, it constitutes a first step toward the development of theories that fill the void between the static theory of LRAC curves and the theories of increasing, decreasing, and constant cost industries. Furthermore, many questions, such as optimal plant or firm size, should be answered in a dynamic framework if appropriate managerial or anti-trust issues are to be considered. Finally, this dynamic framework shifts the emphasis of studies of scale economies back to costs and the use of this framework should result in improved corporate planning and decision making.     

Source Credibility in Environmental Health – Risk Controversies: Application of Meyer''s Credibility Index

This article applies an existing five-item index for measuring source credibility in the context of environmental health-risk controversy. Survey data were gathered in five upstate New York communities facing environmental health-risk issues. Analysis of the five case studies and a combined dataset (N = 870) show that the credibility index was consistently reliable across all applications. Use of the resulting index is demonstrated through a comparison of the credibility of the New York State Department of Health (active in each case), the industries associated with each case, and the newspaper providing coverage of each case. The credibility index was used to predict risk judgments in a structural equation model. Overall, the analysis demonstrated that the credibility index performed consistently well across the five cases and illuminated important differences in each. As such, the index should be a useful addition to many environmental health and risk communication studies.     

Safety culture: Philosopher's stone or man of straw?

This introductory paper to the special issue on Safety Culture considers some of the key issues relating to the nature, measurement and utility of this concept. It argues that there are many important questions still unanswered: what is safety culture and what is its theoretical basis (the question of definition), is it synonymous with safety climate, what are the essential characteristics of a 'good' safety culture and how might they be best measured, what are the reliability, validity and utility of existing measures of safety culture, and how does the concept contribute-if at all-to good safety systems and performance? Can an organization's safety culture be related to additional parameters (such as accident and incident performance) which are judged both within and outside the organization by the full range of stake-holders? Finally, the authors consider future issues and the future direction of work in this area.     

Designing innovative systems

Some current authors of management theory suggest that formal systems and procedures are inconsistent with innovative behaviour in organizations. Yet many organisations are developing increasingly formal strategic planning and control systems to assure organisational change and responsiveness to dynamic environments. In this article, the author suggests that these trends are not as paradoxical as they initially seem. However, formal systems design—to assists the innovation process—must exhibit different characteristics from the traditional design methods used by systems analysts, industrial engineers, or writers of policies and procedures.     

Achieving manufacturing excellence through the integration of enterprise systems and simulation

This paper discusses the significance of the enterprise systems and simulation integration in improving shop floor’s short-term production planning capability. The ultimate objectives are to identify the integration protocols, optimisation parameters and critical design artefacts, thereby identifying key ‘ingredients’ that help in setting out a future research agenda in pursuit of optimum decision-making at the shop floor level. While the integration of enterprise systems and simulation gains a widespread agreement within the existing work, the optimality, scalability and flexibility of the schedules remained unanswered. Furthermore, there seems to be no commonality or pattern as to how many core modules are required to enable such a flexible and scalable integration. Nevertheless, the objective of such integration remains clear, i.e. to achieve an optimum total production time, lead time, cycle time, production release rates and cost. The issues presently faced by existing enterprise systems (ES), if properly addressed, can contribute to the achievement of manufacturing excellence and can help identify the building blocks for the software architectural platform enabling the integration.     

Integrating information systems into business strategies

The role of information systems (IS) in business is changing rapidly. The information revolution, driven by dramatic improvements in cost and performance of the technology is radically altering the business environment of many firms— restructuring whole industries, re-aligning the balance of power and leverage of industry component firms and enabling competitive strategies to be implemented or sustained more effectively. This transformation of role requires strategies for information systems to become an integral part of business strategy formulation. Traditional approaches to the management of IS activities are inappropriate for the determination of business strategies for systems. However, the techniques of corporate strategic analysis and formulation can be used to determine how IS should be managed to gain maximum business benefit.     

The future of computers in financial institutions

An examination of the development of computer usage in financial institutions reveals two reasons for this use. First, the pressure of growth e.g. cheque clearing, where irrespective of cost justification, business volumes were growing at such a rate that it would have been impossible to exist without automation. Secondly, those uses which were cost justified, usually in saving labour but which were constrained in their implementation by the answers to the justification equation e.g. centralized accounting systems in banks and building societies. Only so much was implemented because the technology was relatively expensive. More recently, however, technology has advanced in power, complexity and price-performance terms to the point where the user is no longer constrained either by the capability of the system to carry out the task, or by the expense of the system in relation to the cost of the job as currently performed.     

Do your planning processes meet the reality test?

Sophisticated planning systems and touted techniques have never been a guarantee of success to a business. We believe this is because there has been too much focus on the content of strategy rather than the underlying process, and because the process is often poorly matched to the nature of the problem. For strategic situations the issues are usually complex and unpredictable with many unknowns and a large human factor, typical of the problem category defined as ‘wicked’. This article identifies a set of seven fundamental process principles for dealing with such problems. The principles are a starting point in the effort to codify the ‘art’ of successful strategic planning. Several examples of the use of the principles in business contexts are provided.     

关于开发与实施流程工业CIMS的思考

本文在对管控一体化与CIMS进行对比分析的基础上,通过对制造工业CIMS集成技术的剖析,重点讨论了流程工业的CIMS集成技术。     

Future management research directions in nanotechnology: A case study

Leading experts believe that advances in nanotechnology will lead to dramatic changes in the way materials, devices and systems are understood and created. Generalizations about nanotechnology-based innovations abound in technical circles and in the media, where they are typically described as radical, their anticipated impact on firms as disruptive, and their effect on society as transformative. To-date, no articles have been published in peer-reviewed technology management research journals on the subject. This paper suggests that nanotechnology is a general purpose technology and that, as such, its applications will spread through many economic sectors with varying magnitudes and forms of impact on existing firms and industries. This paper also demonstrates how the innovation management literature can be used to guide further research aimed at anticipating the magnitude and nature of the impact of specific nanotechnology-based innovations.