Redesigning a Cellular Manufacturing System to Handle Long-Term Demand Changes: A Methodology and Investigation*

Cellular manufacturing systems have been proposed as an alternative to the job shop since they provide some of the operational benefits of a flow line production process, while retaining to some extent the flexibility of job shops. However, this must be balanced against the possibility of additional initial investments in equipment to form the cells and a certain loss in manufacturing flexibility, particularly in terms of the ability to deal with long-term demand changes. This paper presents a model-based heuristic cell system redesign methodology to deal with such demand changes. The methodology is validated and applied to system designs generated from several data sets published in the literature. Results show that different kinds of demand changes incur distinct kinds of costs. Further, characteristics of cell designs that can handle long-term demand changes at least cost are identified.     

An Information‐Processing Approach for Evaluating In‐Store Retail Operational Design Strategies

We develop a model to evaluate retail store operational design strategies using an information‐processing perspective of organizational design. We propose that three model constructs pertaining to in‐store shopper task uncertainty—the product mix complexity, the service production complexity, and the product mix changeover—create shopper encounter information requirements (IR). These requirements can be met using specific retail service operational design choices for managing shopper encounters, namely, designing layouts for self‐service (SS) and providing employees with task empowerment (TE). The model is then operationalized using a two‐stage approach to develop new multi‐item, measurement scales. The psychometric properties and predictive validity of the scales and model are then confirmed by using structural equation modeling with survey data from 175 merchandise retail store managers. We find that our model can be generically applied across the retail industry to understand how shopper encounter IR motivate retailer store design choices and can be used to determine whether to design stores for SS or to provide store employees with TE. We then evaluate the efficacy of the studied store design choices on customer delivery satisfaction, and offer some suggestions for future research.     

Decision Sciences Research in China: A Critical Review and Research Agenda—Foundations and Overview*

This article focuses on decision sciences research in China, providing an overview of current research and developing a foundation for future China‐based research. China provides a unique research opportunity for decision sciences researchers, owing to its recent history, rapid economic development, and strong national culture. We examine recent economic reforms and their impact on the development of research questions in the decision sciences, as well as discuss characteristics of the diverse regions in China and their potential as sites for various types of research. We provide a brief overview of recent China‐based research on decision sciences issues relating to national culture, supply chain management, quality management, production planning and control, operations strategy, and new product development and discuss some of the unique methodological challenges inherent in China‐based research. We conclude by looking forward to emerging research opportunities in China.     

A Note on ‘An Approximate Solution to Deterministic Systems’

In a recent paper, Moeeni and Chang (1990) presented an efficient heuristic solution method to solve a specific case of a deterministic kanban system. In this paper, we first provide a simple numerical example to show that the kanban system formulation proposed by Moeeni and Chang can result in infeasible solutions. We then present a modified formulation and show its feasibility. We discuss the implications of the corrected formulation and finally present conclusions and future research directions.     

Tour Scheduling and Task Assignment of a Heterogeneous Work Force: A Heuristic Approach

The dual problem of work tour scheduling and task assignment involving workers who differ in their times of availability and task qualifications is examined in this paper. The problem is presented in the context of a fast food restaurant, but applies equally well to a diverse set of service operations. Developing a week-long labor schedule is a nontrivial problem, in terms of complexity and importance, which a manager spends as much as a full workday solving. The primary scheduling objective (the manager's concern) is the minimization of overstaffing in the face of significant hourly and daily fluctuations in minimum staffing requirements. The secondary objective (the workers’ concern) is the minimization of the sum of the squared differences between the number of work hours scheduled and the number targeted for each employee. Contributing to scheduling complexity are constraints on the structure of work tours, including minimum and maximum shift lengths and a maximum number of workdays. A goal programming formulation of a representative problem is shown to be too large, for all practical purposes, to be solved optimally. Existing heuristic procedures related to this research possess inherent limitations which render them inadequate for our purposes. Subsequently, we propose and demonstrate a computerized heuristic procedure capable of producing a labor schedule requiring at most minor refinement by a manager.     

Dancing with the Devil: Partnering with Industry but Publishing in Academia*

We believe that partnering with industry can lead to research that is relevant, rigorous, and refreshing. Our experiences show that the potential benefits of partnering with industry are enormous, but that this is not an easy route for academics interested in operations research modeling or empirical methods. The need for grounded business research is greater now than ever, and, while academics have made great progress, there are still numerous opportunities to demonstrate the relevance of our research. We discuss how to establish industry contacts, identify fruitful academic—industry projects, and publish the resulting research.     

A Game-Theoretic Approach to Quantity Discount Problems*

The traditional quantity discount problem is analyzed from the perspective of game theory, including both noncooperative and cooperative models. For the noncooperative case, the Stackelberg equilibrium is derived. For the cooperative case, the Pareto Optimality criteria are used to find a group of optimal strategies. Both scenarios are illustrated through an example which quantifies the benefits resulting from cooperation between the buyer and the seller for game-theoretic solutions using geometric programming.     

A Theory of Production Competence*

Production competence is an enigmatic functional phenomenon. What is it? Can it be measured? Does it affect business performance? The literature barely touches on these issues. If competence is defined as a variable rather than a fixed attribute, it can be measured by how well manufacturing's strengths and weaknesses complement the priorities of the business strategy. Since performance is a measure of how well that strategy works, there should be a definable relationship between competence and performance. This study proposes just such a relationship and promotes production competence as the theoretical link between production process and business strategy.     

A Reexamination of ‘Measuring the Congruence Between Market Requirements and Manufacturing: A Methodology and Illustration'*

This paper reexamines the idea of developing an index of manufacturing fit with market requirements. Bozarth and Berry's (1997) recent work provides a starting point. Several conceptual and methodological issues relating to the Bozarth and Berry approach are raised. It is argued that the indifference profile concept suggested by the authors bears reexamination.     

A Heuristic Algorithm for the Capacitated Multiple Supplier Inventory Grouping Problem

This paper presents and solves a model for the multiple supplier inventory grouping problem, which involves the minimization of logistics costs for a firm that has multiple suppliers with capacity limitations. The costs included in the model are purchasing, transportation, ordering, and inventory holding, while the firm's objective is to determine the optimal flows and groups of commodities from each supplier. We present an algorithm, which combines subgradient optimization and a primal heuristic, to quickly solve the multiple supplier inventory grouping problem. Our algorithm is tested extensively on problems of various sizes and structures, and its performance is compared to that of OSL, a state-of-the-art integer programming code. The computational results indicate that our approach is extremely efficient for solving the multiple supplier inventory grouping problem.     

Measurement Equivalence Using Generalizability Theory: An Examination of Manufacturing Flexibility Dimensions

As the field of decision sciences in general and operations management in particular has matured from theory building to theory testing over the past two decades, it has witnessed an explosion in empirical research. Much of this work is anchored in survey‐based methodologies in which data are collected from the field in the form of scale items that are then analyzed to measure latent unobservable constructs. It is important to assess the invariance of scales across groups in order to reach valid, scientifically sound conclusions. Because studies have often been conducted in the field of decision sciences with small sample sizes, it further exacerbates the problem of reaching incorrect conclusions. Generalizability theory can more effectively test for measurement equivalence in the presence of small sample sizes than the confirmatory factor analysis (CFA) tests that have been conventionally used for assessing measurement equivalency across groups. Consequently, we introduce and explain the generalizability theory (G‐theory) in this article to examine measurement equivalence of 24 manufacturing flexibility dimension scales that have been published in prior literature and also compare and contrast G‐theory with CFA. We show that all the manufacturing flexibility scales tested in this study were invariant across the three industry SIC groups from which data were collected. We strongly recommend that G‐theory should always be used for determining measurement equivalence in empirical survey‐based studies. In addition, because using G‐theory alone does not always reveal the complete picture, CFA techniques for establishing measurement equivalence should also be invoked when sample sizes are large enough to do so. Implications of G‐theory for practice and its future use in operations management and decision sciences research are also presented.     

A Theory of Production Competence Revisited*

A recent article [3] proposed a definable relationship between production competence and business performance and presented empirical evidence to support the relationship. The purpose of this note is four-fold. First, it corrects the authors' numerical measure of production competence. The correction changes the nature of the relationship between competence and performance. Second, this note suggests an improved numerical measure of business performance (the dependent variable in the study). The authors of [3] defined performance in a manner which inadvertently captures elements used to measure production competence (the independent variable). The result is a deceptively close fit of the authors' model with the data. The third purpose of the note is to introduce a more appropriate theoretical framework for the production competence construct. It is shown that production competence is closely related to the formulation and implementation of manufacturing strategy and can best be understood within that context. Last, an alternative conceptual model of the relationship between business strategy, production competence, and business performance is presented. The new model includes a construct which measures the “fit” of a firm's business strategy to its external, competitive environment.     

Measuring the Congruence Between Market Requirements and Manufacturing: A Methodology and Illustration*

This paper presents a measurement methodology, based on existing research in the manufacturing strategy and general strategy areas, for evaluating the congruence between market needs and manufacturing plant capabilities. The proposed methodology has several important advantages over current approaches. First, the methodology uses available data and statistical techniques to measure market-manufacturing congruence. As a result, it is not dependent on assumptions about “classic” process choices. Second, the proposed methodology can evaluate the strategic fit between market needs and manufacturing in light of one or more performance criteria. Third, the methodology can be used to derive scalar measures of market-manufacturing congruence, allowing users to evaluate congruence for a large number of products, customers, or market segments. The theoretical basis, research objectives and major steps of the methodology are discussed, followed by an illustrative example from a North American manufacturer. Finally, the applicability of the methodology to a wide range of strategic manufacturing decisions is discussed.     

A Comparative Analysis of Quality Practice in Manufacturing Firms in the U.S. and Taiwan*

The aim of this paper is to determine if there is a causal relationship between multivariate constructs for quality (i.e., customer satisfaction, employee satisfaction, and employee service quality) and organizational performance. The presence of such relationships, as well as the identification of key indicators within each quality construct for different types of firms, are explored in this empirical study on the perceptions of middle managers in Taiwan and the United States. The study found a significant causal relationship between the quality constructs and organizational performance. These relationships are different, however, for the four types of firms based on age and size. Also, within the same firm types, there are differences among countries. For example, for older firms, Taiwanese managers tend to perceive customer satisfaction as the most important quality construct in improving organizational performance, while U.S. managers tend to perceive employee satisfaction as the most important. For younger firms, U.S. managers perceive customer satisfaction as influencing organizational performance, while Taiwanese managers perceive both customer satisfaction and employee satisfaction as doing so. A further breakdown of the quality constructs identified the key indicators within each construct that separates “better performers'’from “lesser performers'’in both countries for the four types of firms. These indicators are dissimilar, thus suggesting that focus on quality constructs may lead to improvements in organizational performance by focusing on different indicators in different environments. These results have implications for the adoption and implementation of quality practices in different countries.     

Effective Design of Products/Services: An Approach Based on Integration of Marketing and Operations Management Decisions*

This paper presents an integrated framework for designing profit‐maximizing products/ services, which can also be produced at reasonable operating difficulty levels. Operating difficulty is represented as a function of product and process attributes, and measures a firm's relative ease or difficulty in meeting customer demand patterns under specified operating conditions. Earlier optimum product design procedures have not considered. operational difficulty. We show that optimum profit, market share, cost, and product profiles are dependent on operating difficulty level. Empirical results from the pizza delivery industry demonstrate the value of the proposed Effective Product/Service Design approach.     

Replication of Measures in Information Systems Research: The Case of IS SERVQUAL*

The Information Systems (IS) discipline should recognize potential pitfalls in replication of research studies. This response to a note appearing in this issue by Van Dyke, Prybutok, and Kappelman (1999) aims to serve two purposes. First, this note will address the problems we have with the Van Dyke et al. (1999) attempted replication of our own previous work. Second, we hope it serves to establish more generally an awareness in the IS field for the potential to create and accept the “illusion of replicability” when this has not really been established.     

Applications and Implementation: AN EXPERIMENTAL COMPARISON OF CELLULAR (GROUP TECHNOLOGY) LAYOUT WITH PROCESS LAYOUT

This study compares different strategies for arranging machines in a facility. Computer simulation of two different machine shops was used to compare process layout (the arrangement of groups of machines where the machines within a group are interchangeable) to cellular layout designed using group technology concepts (the use of manufacturing cells where each cell contains different types of machines dedicated to the production of similar parts). Four layout strategies, including process layout, cellular layout, and two hybrid layouts, were compared in two machine-shop models. The shops that used cellular layouts had shorter setup times, lower machine utilization, and shorter distances traveled, on average. The shops with process layout, however, had better performance on queue-related statistics such as work-in-process inventory level and average flow time. This suggests that a well-organized traditional job shop may be able to achieve overall performance that at least is comparable to that of the same shop using cellular (group technology) layout.     

A Hierarchical Production Planning and Scheduling Model

A hierarchical production planning and scheduling system is developed that integrates planning decisions into a unified and consistent framework. A three-tiered approach is used to address long-term inventory control, short-term production planning, and daily scheduling tasks. A product grouping scheme introduces uniformity into the solution process and simplifies overall model complexity. Results of the model implementation are reported.