A step-by-step guide to the identification of an appropriate computer-aided production management system

The increasing dissatisfaction of users with their Computer-aided production management (CAPM) systems has been widely reported. This dissatisfaction led the UK's Science and Engineering Research Council to initiate a major study to improve CAPM systems use. The research results presented here form part of the overall initiative and focus on the development of a set of guiding principles for companies seeking to implement appropriate CAPM systems. The research team have identified three key elements that must be considered when implementing a CAPM system. First, that CAPM implementation can be eased if the overall manufacturing-system is first simplified. Second, we recognize that even then most companies will still require a computerized solution thus any methodology must include a software specification. Third, the overall performance of the system may be enhanced by changes to the infrastructure that supports the software. In attempting to meet these requirements the research team developed a four-stage methodology. The first two stages of the methodology deal primarily with the strategic context for CAPM, i.e. the simplification. The last two stages develop a software specification and present guidelines for the development of appropriate infrastructure configurations.     

A modified hierarchical production planning system integrated with MRP: A case study

In this paper, a hierarchical planning system is proposed which integrates aggregate capacity planning with MRP. This system is to be implemented in a metal box manufacturing company which multi-user MRP system covering manufacturing activities as well as procurement sales order processing and accounting systems. The hierarchical planning system includes a medium-range aggregate planning model adapted to the firm's requirements and strategies. The model consists of a mathematical formulation which covers labour capacity has already installed a constraints and includes certain cost estimations in the objective function. The planning horizon of the medium range planning is taken as twelve months in order to cover sales seasonality. The aggregate production quantities resulting from the optimized medium-range planning model are disaggregated according to procedures already found in the literature. Furthermore, the theoretical infeasibilities pertaining to the disaggregation procedures are also resolved in an heuristic manner. Using the latter modified disaggregation procedure, a feasible disaggregated plan is generated for the whole planning horizon. The proposed plan is compared with the current production policy of the firm and it is observed that the proposed plan leads to backorder reduction.     

A framework for production control in health care organizations

The paper presents a hierarchical framework for production control of hospitals which deals with the balance between service and efficiency, at all levels of planning and control. The framework is based on an analysis of the design requirements for hospital production control systems. These design requirements are translated into the control functions at different levels of planning required for hospital production control. The framework consists of five levels of planning and control: patient planning and control, patient group planning and control, resources planning and control, patient volumes planning and control and strategic planning, though this last level does not make part of production control as such. Each of the levels of the framework is further elaborated in terms of the decisions made regarding patient flows and resources, and the co-ordination of the different planning levels. Implications of the framework are discussed by describing some points where current practice deviates from assumptions made in our approach. Recommendations for future research and development of the planning framework are formulated.     

Relation between market orientation and market environment et al., in Korean firms entering to North American markets

This study was conducted to test the antecedent factors of market orientation and the relationship between market orientation and business performance of overseas subsidiaries. The author also investigates whether competitive strategy might affect the strength or weakness of the market orientation—performance relationship. The results of research show that the magnitude of the firm and market turbulence have significance as antecedent factors of market orientation, and competitive strategy can also moderate the relationship between market orientation and performance. Lastly, the results show that the relationship between market orientation and performance has a positive significance.     

A neural network clustering model for miscellaneous components production planning

The growing importance of providing service to customers, e.g. post-sale assistance, supplying of spare parts, upgrading and integration of new elements in installed systems, enhances the importance of planning and management of upgrading parts in most manufacturing industries. These parts are generally characterized by high technical heterogeneity and have a highly variable and difficult to forecast demand. In some areas (especially the most dynamic, e.g. high-tech products), these kinds of components are quite common, and represent a very strong relation between the manufacturing firm and the market. These parts are generally too many to be efectively supported on a planning database system with individual records and too heterogeneous ( and sometimes with a too high value) to be supported all together in a single record. In this paper, we want to study the application of adaptive techniques for the clustering of these components in classes based on the similarities in their market behaviour in order to build an optimal database for planning production and supplying of these components.     

Optimal price,warranty length and production rate for free replacement policy in the static demand market

In the present paper, a decision model is developed for producers in the static demand market to determine the optimal price, warranty length and production rate of a product to maximize profit based on the pre-determined life cycle. The free renewal warranty policy is considered under which failed products are renewed before the end of warranty length at no cost to consumers. The expected number of renewals based on warranty length is derived for Weibull life distributed products. The objective function includes both demand and cost functions, where production cost, warranty cost and inventory cost are involved. A solution approach using the maximum principle is described, and is applied to two specific cases of markets. The first case of market considers positive discount rate, and the second case of market considers zero discount rate. The economic sensitivity analysis is conducted to evaluate the effect of model parameters on the optimal solution. Some conclusions are drawn based on the sensitivity analysis.     

A real options model of market entry: Endogenous uncertainty and exogenous uncertainty

We develop a real options model of market entry that focuses on the dueling growth and deferral options by differentiating between endogenous uncertainty and exogenous uncertainty. While exogenous uncertainty influences the growth option market value or price, it is endogenous uncertainty that influences the value of the growth option through the ability to create a competitive advantage from preemptive market entry. First, the firm can decrease the exercise price of the growth option (i.e., the cost of the follow-on investment) through experiential learning that reduces endogenous uncertainty. Second, the firm can increase the relative discounted cash flows of the follow-on investment due to its ability to influence market demand that reduces endogenous uncertainty. On the other hand, the value of the deferral option increases with exogenous uncertainty as firms cannot influence exogenous uncertainty, and therefore, should invest elsewhere while waiting for the exogenous uncertainty to subside. As such, we provide a solution to the conundrum that the value of both the growth option and the deferral option increase with uncertainty. Finally, we demonstrate how the model addresses sequential market entry; irreversibility and market entry mode; competition; scarce strategic resources; host country development level; and industry life cycle stage.     

从“市场导向”到“引导市场”:营销观念的转变

本文论述了“引导市场”策略的含义及其与其他传统策略的异同,提出了已定型的企业实施该策略的障碍与措施.     

A general approach to disassembly planning and control

Closing product and material cycles have emerged as a paradigm for industry in the 21st century, and are directed towards an economical and responsible use of our limited resources. Disassembly plays a key role in recycling. It enables the recovery of functioning components for re-use of pure materials for re-utilization and the separation of harmful substances. Major challenges are presented by the enormous variety of products to be disassembled, by uncertainty as to quantity and by their unknown properties. An appropriate planning and control of disassembly processes is essential for an economic disassembly. Based on an investigation of the suitability of common production planning and control (PPC) methods for disassembly, a specific disassembly planning and control concept (DPC) is outlined.     

A generic accounting model to support operations management decisions

Information systems are generally unable to generate information about the financial consequences of operations management decisions. This is because the procedures for determining the relevant accounting information for decision support are not formalised in ways that can be implemented in information systems. This paper describes a formalised procedure, which is based on the following theoretical propositions: (i) cost behaviour is described on the basis of a company's contracts for purchasing and selling resources, and (ii) hierarchical relationships between decisions are recognised, because some decisions have to be made earlier than others. Earlier decisions determine the feasible alternatives for later decisions (e.g. through constraints in available production capacity or components), and the plans that supported the earlier decisions serve as instructions for later decisions. The procedure can be implemented in information systems to provide accounting information in case later decisions deviate from these instruc tions (within the limits of the real-world constraints) because new information becomes available.     

A Computational Study of Replicated Clustering with an Application to Market Segmentation*

In most commercial applications of k-means clustering, researchers choose one set of kseed points to start the partitioning process; often, the initial set of seeds is chosen randomly. Using Monte Carlo simulation, we show that significant benefits are associated with replicated starting configurations that incorporate seed selection procedures based on a hierarchical clustering of sample points drawn from the original data matrix. A real-world application of the approach is then presented.     

A Strategic,Area-wide Contingency Planning Model for Oil Spill Cleanup Operations with Application Demonstrated to the Galveston Bay Area*

This paper develops a general integer programming model for strategic, area-wide contingency planning of oil spill cleanup operations. Model inputs include the set of risk points and the likely spill scenarios and response requirements for each, the sites of existing storage locations and the inventory of components at each, and potential sites for new storage locations. The model prescribes a minimum total cost plan to either build new storage locations, expand existing ones, or both, to purchase new components and pre-position them, and a contingency plan that determines which response systems should be composed to enable an effective time-phased response for each likely spill scenario. A family of heuristics based on linear programming (LP) is devised to resolve this strategic problem, providing an area-wide contingency plan. The heuristics are evaluated on a set of 10 test problems that involve 1869 general integer variables and 3264 constraints. Computational tests indicate that four heuristics are quite effective, prescribing solutions for each of 10 test cases within 1.41% of optimum and within a few minutes runtime. This study focused on modeling the Galveston Bay Area, and the test problems represent application in that area. A sensitivity analysis is demonstrated by assessing the impacts of component availability and the degradation of cleanup capability over time. Use of the model as a decision support aid by responsible parties, contractors, governmental organizations and others is described.     

A heuristic approach to long-haul freight transportation with multiple objective functions

This paper studies a long-haul freight transportation problem stimulated by a real-life application, whose underlying vehicle routing problem is a multi-objective one, where travel time and route cost are to be minimized together with the maximization of a transportation mean sharing index, related to the capability of the transportation system of generating economy scale solutions. In terms of constraints, besides vehicle capacity and time windows, transportation jobs have to obey additional constraints related to mandatory nodes (e.g., logistic platform nearest to the origin or the destination) and forbidden nodes (e.g., logistic platforms not compatible with the operations required). Based on the network definition, routes can be multimodal. To solve this problem, we propose a heuristic algorithm that can be applied in the tactical and the operational planning phase, and present the results of an extensive experimentation.     

Ascribing materiality and agency to strategy in interaction: A language-based approach to the material agency of strategy

Adding to the existent research on strategy as discourse and practice, this paper develops a language-based approach to viewing the agency and materiality of strategy. The study draws insights from the communicative constitution of organization (CCO) approach and linguistic agency to investigate how organizational members ascribe materiality and performative agency to strategy in their talk-in-interaction. The data consist of 14 video-recorded dyadic manager-to-manager conversations from one private and one public Finnish organization. The findings highlight how strategy is habitually spoken of as a material concrete entity and as a nonhuman agent that makes a difference in the course of described actions. The findings thus suggest that the performative position of strategy has been encoded in language and its use, which further suggests that object-like concreteness and agentivity are key elements of the organizational strategy discourse.     

A regional solution to the strategy and structure of multinationals

The transnational solution developed by Bartlett and Ghoshal is shown to be suitable for only a few special cases of multinational enterprise (MNE) strategy and structure. As MNEs have most of their assets and sales within their home region, they are in need of regional, not transnational strategy and structure. Here we provide data on the regional dimension of assets and sales of the world’s largest 500 multinationals. We explore how the empirical reality of a regional concentration of assets and sales imposes a regional solution, rather than the transnational solution.     

Integrated production strategy and reuse scenario: A CoFAQ model and case study of mail server system development

One of the core problems in software product family (SPF) is the coordination of product building and core asset development, specifically the integration of production strategy decision and core asset scenario selection. In the current paper, a model of Cost Optimization under Functional And Quality (CoFAQ) goal satisfaction constraints is developed. It provides a systematic mechanism for management to analyze all possible products and evaluate various reuse alternatives at the organizational level. The CoFAQ model facilitates decision-makers to optimize the SPF development process by determining which products are involved in the SPF (i.e. production strategy) and which reuse scenario for each module should be selected to implement the SPF toward minimum total developing cost under the constraints of satisfying functional and quality goals. A two-phase algorithm with heuristic (TPA) is developed to solve the model efficiently. Based on the TPA, the CoFAQ is reduced to a weighted set-covering problem for production strategy decision and a knapsack problem for the reuse scenario selection. An application of the model in mail server domain development is presented to illustrate how it has been used in practice.     

A Two-Period Repeated Game Advertising Investment Model for Oligopolistic Markets with an Application to the Beer Industry*

This paper proposes a simple analytical model of advertising competition in oligopoly markets. The widely used log-log sales response function underlies the model specification. Advertising carryover effects are assumed to persist for one period following the period in which the expenditure occurs. Firms are assumed to be engaged in a repeated competitive game in which in every period advertising levels are set such that they maximize current and next period (i.e., two-period) profits. A Nash equilibrium solution is sought for the game. Compared with previous empirical studies of advertising competition in a game theoretic framework, the proposed model offers the following advantages: (1) oligopoly, not duopoly, markets are analyzed; (2) industry sales is allowed to vary over time as a function of advertising expenditures; (3) non-zero discount rates are used for the players. An empirical application is provided using data from the beer market on sales and advertising expenditures of Anheuser-Busch and Miller Brewing. Comparisons are provided with policies that ignore the dependence of next period profits on current advertising levels, reaction function strategies and spending levels obtained from a market share game. Extension of the model formulation to multiple marketing instruments is briefly discussed.     

Development of demand pull type control methods: The design of block action production control methods to reduce throughput time and improve supply chain synchronization

In this paper the implementation of time based manufacturing strategies and pull type control systems in an organization manufacturing electrical switchgear built to customers individual requirements are discussed in detail. The concept of block control to synchronize the production time of all internally and externally sourced components and materials is also introduced in an attempt to simplify production control methods and reduce throughput time. Savings in time and cost are described during a twenty months period of restructuring. Foundations were laid for a second objective which is an attempt to gain some linkage between throughput time reduction and resultant production costs.