System Dynamics as a Structural Theory in Operations Management

The purpose of the paper is to demonstrate the usefulness of (1) system dynamics as a structural theory for operations management and (2) system dynamics models as content theories in operations management. The key findings are that, although feedback loops, accumulation processes, and delays exist and are widespread in operations management, often these phenomena are ignored completely or not considered appropriately. Hence, it is reasoned why system dynamics is well suited as an approach for many operations management studies, and it is shown how system dynamics theory can be used to explain, analyze, and understand such phenomena in operations management. The discussion is based on a literature review and on conceptual considerations, with examples of operations management studies based on system dynamics. Implications of using this theory include the necessary re‐framing of some operations management issues and the extension of empirical studies by dynamic modeling and simulation. The value of the paper lies in the conceptualization of the link between system dynamics and operations management, which is discussed on the level of theory.     

INTRODUCING INTERNATIONAL ISSUES INTO OPERATIONS MANAGEMENT CURRICULA

As the world moves toward a global economy, it is increasingly important that operations management courses prepare students to address globalization issues. The purpose of this paper is to contribute to the dialog concerning how international topics are best incorporated into operations management curricula. On the basis of the results of a survey of operations management academicians worldwide, current course offerings are cataloged and topic areas critical to the globalization of operations are identified. Four major reasons for studying international operations management are proposed, which provide the basis for recommendations on how international topics can be introduced into established operations courses and for the design of an elective course in global operations. Finally, teaching materials relevant to international operations are surveyed.     

Applying a longitudinal interpretive multi-case research method to study the employee impact of operations management systems in a micro firm setting

Abstract

While many operations management journals are now publishing interpretive studies, there is still a need for more material on how to carry out such work under the interpretive gestalt. By offering a research account of a longitudinal interpretive multi-case study, this paper seeks to contribute to the literary gap in ‘how to do it [interpretive research]’. The purpose of this paper is to document a longitudinal operations management study in three micro-firms, where the catalyst for this study is the implementation of an electronic operations management system in each case. The paper chronicles the authors’ experience in a four-year multi-case study, and as such provides insight into design, development and execution of longitudinal interpretive operations management research, and the building of a theoretical model. While blueprints are not the purpose of such reflections, they can provide insight and advice to researchers, which is the underlying goal of this paper.     

Editorial

As the largest shipbuilding company in the world and the leader in the Korean merchant shipbuilding industry, Hyundai Heavy Industries is currently struggling to carry out intensive productivity improvements. These are needed in order to be the global merchant shipbuilding market leader by surpassing the competition from Japan and the threat from China armed with very cheap labour costs. This paper introduces the academy and industry collaborative project, part of the productivity improvement efforts conducted on the steel stockyard operations. As a pilot project it researched a way of improving the stockyard operations and future projects on the stockyard operations. The project defined the stockyard operations, measured current situations, and analysed operational difficulties. In addition, the project developed the steel stockyard operations simulator. Besides the simulator used by the operations manager, who has relied heavily on his work-experienced intuition when making decisions, this paper expects that further projects on the stockyard operations utilise the simulator for their own purposes.     

Lean road transportation – a systematic method for the improvement of road transport operations

Road transportation has become an important factor in international trade and the management of supply chains. However, this form of product logistics has generally been considered inefficient. Traditionally, practical inefficiencies of road transportation have been addressed through mathematical modelling, operations research-based methods and simulation. This paper presents an alternative systematic approach to improve road transport operations based on lean thinking and the reduction of the seven transportation extended wastes. To do this, the paper reviews the extant literature in the area of lean road transportation, providing a structured research definition of the application of lean thinking in road transport operations and hence guidance on the limited research conducted in this field. The systematic lean transportation method is then presented and empirically tested through a case study in a Mexican firm. The results obtained from the case study indicate that the proposed systematic lean method is an effective alternative for the improvement of road transport operations, with the number of distribution routes and distance travelled being reduced by 27 and 32%, respectively. The proposed method can be used by organisations as a guide to help them improve their road transport operations. In addition, the paper’s aim is to contribute by stimulating scholars to further study the application of lean thinking and waste reduction in road transport operations.     

Supply and Operations: Parallel Paths and Integrated Strategies

This paper provides evidence of links between the nature of strategic formulation within firms and subsequent plant performance. The research focuses on how some firms have managed to link operations and supply into an integrated set of mutually supportive strategies. In the current competitive arena firms can no longer rely wholly on internal resource-based capabilities but must instead form strategic partnerships within what are often complex networks. The paper explores how operations and supply functions have pursued parallel paths but have often not been fully integrated within firms. It is argued that such integration, which forms part of what has been termed strategic resonance , can reap enormous benefits in terms of plant-level capabilities for firms.     

Consumer Behaviour and Order Fulfilment in Online Retailing: A Systematic Review

This paper provides a systematic review of consumer behaviour and order fulfilment in online retailing. The objective of this review is threefold: first, to identify elements of order‐fulfilment operations that are relevant to online consumer behaviour (purchase, repurchase, product return); second, to understand the relationship between order‐fulfilment performance and consumer behaviour; and third, to inspire future research on developing consumer service strategies that takes account of these behavioural responses to order‐fulfilment performance outcomes. The paper is based on a systematic review of literature on online consumer behaviour and order‐fulfilment operations, mainly in the fields of marketing and operations, published in international peer‐reviewed journals between 2000 and September 2015. This study indicates that the current literature on online consumer behaviour focuses mainly on the use of marketing tools to improve consumer service levels. Very little research has been conducted on the use of consumer service instruments to steer consumer behaviour or, consequently, to manage related order‐fulfilment activities better. The study culminates in a framework that encompasses elements of order‐fulfilment operations and their relationship to online consumer behaviour. This paper is the first comprehensive review of online consumer behaviour that takes aspects of order‐fulfilment operations into account from both marketing and operations perspectives.     

社会学习视角下运营管理决策研究

随着电子商务的快速发展与广泛应用, 在线评论随处可及, 深刻地影响了消费者与企业的决策行为.基于社会学习视角, 介绍了相关概念及社会学习机理;深入分析了运营管理决策研究的现状、挑战与契机.在此基础上, 结合产品与服务管理实践, 从研究内容角度, 阐述了其延伸的4个方向, 即质量、服务与信息、产品类型、研究主体与社会学习平台;此外, 结合研究范式演变, 指出行为实验研究与数据驱动研究将成为不可或缺的研究范式, 形成多范式交叉融合的情形.文章旨在提炼社会学习视角下运营管理决策研究的未来发展方向, 为相关研究提供参考.     

On the versatility of Little’s Law in operations management: a review and classification using vignettes

Abstract

Despite Little’s Law being considered as one of the ‘laws’ of operations management, evidence of its application in an empirical context is diverse and diffuse. Hence, this paper aims to identify, classify and consolidate published empirical applications of Little’s Law in a systematic manner to better understand its versatility. This paper undertakes a systematic literature review of the databases of the five main publishers of operations management journals and snowball sampling for additional papers. A final sample of 128 empirical journal articles is identified and categorized. Tactical, medium-term decisions relating to capacity dynamics and operations re-engineering are the most popular categories. To give further insights into versatility, vignettes for each category are developed. The review and vignettes confirm Little’s Law as a highly relevant paradigm to operations management decisions due to its empirical versatility across levels, sectors and time domains. The paper suggests four factors to underline the empirical versatility of Little’s Law in operations management: applicability, utility, simplicity and visibility.     

A new three-machine shop scheduling: complexity and approximation algorithm

The paper investigates a new three-machine shop scheduling problem that arises from many production systems, such as the garment assembly line, etc. In such scenarios, each job consists of three operations, each of which has to be non-preemptively processed by one specific machine. In contrast with the classical three-machine shop scheduling, the processing order of the operations of each job is partially restricted. In particular, the first two operations are ordered and all the same for all jobs, while the third operation is not restricted. The objective is to minimize the makespan. We show the problem is NP-hard in the ordinary sense and present a polynomial time approximation algorithm with a worst case performance ratio of $\frac{3}{2}$ .     

Global operations strategy: Coordinating manufacturing networks

This paper presents a concept that describes how companies can manage their international operations so as to facilitate the coordination of their manufacturing networks. The research presented originates from a model that was developed at the Swedish telecommunications company Ericsson in the mid-1990s, but has since then been further elaborated. More specifically, the purpose of this paper is to show how Ericsson Radio Systems incorporated the recent research on manufacturing networks found in literature in their global operations strategy, and to present the conceptual model that was the result of these efforts. The conceptual model described in this paper focuses on the blending of cost competitiveness, flexibility, and innovativeness; a combination termed the “transnational solution” in the literature. In addition to a literature review on manufacturing networks and global operations and the proposed conceptual model, the paper also contains a case illustration showing how Ericsson has implemented a version of the conceptual model so that their global operations strategy realizes the transnational solution.     

Theory Development in Operations Management: Extending the Frontiers of a Mature Discipline via Qualitative Research

This invited paper discusses theory development in operations management. Many stellar researchers have made excellent contributions to theory development in our field. Operations management is a maturing discipline. Recently, theory driven empirical research has become common in top‐tier journals in our field. Impelled by this trend and due to the path dependency of research, in general, researchers have examined operations phenomena using theories from management and organizational science. How do we extend the frontiers of knowledge in our maturing discipline? How do we develop theories within the field of operations management? In examining some of the seminal ideas that have shaped our field, a common characteristic is that they relied on observational studies and conceptual reasoning. Is it time for us to stress the usefulness of qualitative research methods in our field? Could this lead to an intellectual renewal in our field and extend the frontier of a maturing discipline? This paper explores these questions and advances the notion that qualitative analysis needs to be emphasized more than it has been in recent past. This paper is meant to provoke discussion among empirical researchers in operations management.     

业务外包委托代理模型中的风险补偿安排

外包活动中代理成本的高低直接影响到外包企业的核心竞争力,如何降低业务外包中的代理成本是本文的研究重点。本文首先从代理成本的机理分析入手,考虑到风险补偿在针对"代理问题"的激励契约设计中的重要性,对一个经典的最优激励契约模型进行改进,期望改进的模型能够有效降低代理成本。改进后的模型结果表明:在最优激励契约中加入风险补偿因素可以使得风险成本和激励成本下降,从而降低代理成本。本文的研究结果具有一定的普遍意义,适用于各种类型的业务外包活动,对外包企业最优激励契约的设计具有指导意义。     

Operations network development: internationalisation and externalisation of value chain activities

Considering the increased significance of both internationalisation and externalisation of manufacturing, this paper aims to provide an integrated understanding of internationalisation and externalisation and seek to identify further development trends. First, this paper investigates and summarises the existing literature in order to examine what has been done on internationalisation and externalisation. An adapted matrix is further presented in order to illustrate a roadmap for the manufacturing system evolution. Claiming that conceptual insights tell only one of the two worlds (i.e. research and practice) of operations management, this paper successively explores what is actually happening in practice on the basis of three case studies selected from the global operations networks (GONE) project, which is a joint-effort between several Danish universities and aims to deepen the understandings on GONE. The empirical findings suggest that the discussions on internationalisation and externalisation need to be extended from manufacturing activity to other value chain activities. Two development trajectories are further identified and combined. Their similarities and differences are correspondingly compared. Based on these findings, some managerial recommendations are given at the end.     

An Integrative,Experiential Approach to Production Management Education

This paper addresses the important relationship between production and operations management (POM) and information technology. An approach to POM education is presented in which information technology is used to create an experiential learning environment that integrates the topics taught in POM courses. Results of an implementation of the proposed approach are presented and implications are discussed for POM education.     

Manufacturing networks and supply chains: an operations strategy perspective

The purpose of this paper is to analyze manufacturing networks and supply chains from an operations strategy perspective. These two areas have traditionally been treated as separate research tracks, but with the ongoing globalization of markets and operations there is a need to integrate these complementary disciplines to study networks of facilities. In this paper we examine the two research areas based on two structural decision categories in an operations strategy, viz. facilities and vertical integration. We present a typology for the analysis of network systems resulting in four basic network configurations. Coordination of activities within the network is contingent upon the configuration, thus resulting in four coordination approaches. The configuration and coordination analyzes can be used as a foundation for further research in the context of integrating manufacturing network and supply chain theory.     

Knowledge management for sustainability in operations

Abstract

The purpose of this paper is to examine the effect of Knowledge Management (KM) as a platform to enable sustainability in firms’ operations and to provide recommendations for managers to integrate sustainable operations into their business strategies. The urgency to create and implement sustainable operations is also argued. The conceptual framework is based on the hypothesis that KM contributes to the achievement of more suitable operations. To test this hypothesis, a model of structural equations was developed with data collected from 345 SMEs. Empirical evidence supported the hypothesis, indicating that KM represents an important alternative to implementing sustainability. The results suggest that managers need to implent KM, as they will enable a better understanding and awareness regarding the global dangerous impacts from unsustainable operations mainly focused on sales and cost reduction. For this reason, this research provides evidence that KM offers an alternative impulse on the quest for more sustainable operations.     

Scheduling to minimize stringer utilization for continuous annealing operations

In this paper we present a mathematical program and heuristic algorithms to schedule coils for the production operations in a copper (or steel) coil manufacturing industry. The processing facility uses continuous operations for processing (e.g., galvanizing and annealing) while the handling unit is a discrete coil. The ends of coils are “stitched” or welded together to enable continuous processing, and the joint is later sheared off to obtain the processed coils. Processing constraints impose restrictions on the compatibility between a pair of coils that are overcome by introducing a dummy coil called stringer, which is very expensive to a mill. This paper deals with modeling the sequencing/scheduling problem of coils on parallel non-identical machines to minimize stringer utilization. Both computational and practical experiences show the efficiency and effectiveness of the solution approaches. Implementing these methods in an actual coil annealing facility resulted in 65% reduction in stringer utilization.     

社会化运作管理:一个正在兴起的研究领域

在信息化、智能化程度日益发达的社会环境中, 参与者之间的信息交互与社会行为开始显著影响整个运作管理系统.而随着与运作管理息息相关的社会经济活动的日益革新, 社会互动行为和社会因素的影响正在得到广泛的关注, 逐渐形成了一个新兴研究领域——社会化运作管理.社会化运作管理是指考虑人的社会性特征及社会影响因素的运作管理.本文从社会互动、社会价值观多元化及新经济形态的发展三个方面分析了运作管理中社会化现象产生的原因及影响, 阐明了研究和发展社会化运作管理的必要性和迫切性, 继而剖析了社会化运作管理的实现途径.在此基础上, 本文从社会学习、社会比较及社会影响等方面对社会化运作管理的理论研究进行了评述, 同时从社会化商务和共享经济角度对应用研究进行了分析, 并结合最新研究成果提出未来可行的研究方向.     

Pre-distribution vs. post-distribution for cross-docking with transshipments

Cross-docking operation is a logistics service mode aims to remove the storage and picking up functions of a warehouse, and coordinate goods loading between delivery vehicles and shipping vehicles. Transshipment is another logistic technique that allows goods to be conveyed from an overstocked store to a nearby understocked store, to avoid backordering or loss of sale. This paper models and analyzes two typical cross-docking operations: pre-distribution cross-docking operations (Pre-C) and post-distribution cross-docking operations (Post-C) when transshipments among retail stores are applied. The different operational performances are investigated and compared. The analytical results show that, considering the inventory cost, transshipment cost and operations cost at the cross-dock, the suitability of Pre-C and Post-C are highly sensitive to operations environment factors such as the uncertainty of demand, the unit operations cost at the cross-dock, and the unit inventory holding and shortage cost.