Performance management of suppliers in outsourcing project: case analysis from the financial services industry

This study investigates the characteristics of an effective performance management framework for outsourcing projects in a UK-based financial services organisation and how this may contribute to the success of the outsourcing arrangement. The analysis draws on outsourcing and performance management theory, and uses both primary and secondary data. Valuable information was found on objective setting, performance measurement and performance improvement in the outsourcing project. An adapted version of the Balanced Scorecard, termed a Logic Scorecard, is suggested as a measurement tool; a service credit system and a continuous improvement schedule used to enhance supplier performance. The performance management framework, which is one of the pillars of the supply chain operations reference (SCOR) model, was developed, and provides practitioners with step-by-step guidance for the implementation of performance management in outsourcing projects. This combines both suggestions for performance management before and after the outsourcing decision, thus considering the entire outsourcing lifecycle. The proposed 10-step framework for outsourcing not only incorporates strategic propositions but also shows its implementation at an operational level.     

Beyond the make-or-buy dichotomy: outsourcing creativity in the fashion sector

Both a resource-based view and transaction cost economics perspective point to firms deciding to either make-or-buy an input. In practice, this tends to result in low-skill functions being outsourced while those of higher value are retained. In this article, we explore a situation counter to the prevailing literature. We study a highly creative industry – fashion – and discover the relationship between core competence and outsourcing is not as simple as previously conceptualised. Creativity, fashion's assumed competency, rather than being guarded within a firm is instead often outsourced or borrowed. More mundane tasks such as marketing and logistics are what each firm rather develops. The effects of resulting co-dependencies are mapped and analysed in order to offer managerial insight as well as contribute to discussion within the outsourcing and resource based literatures.     

Organizations in the Public Sector in Hong Kong: Core Government, Quasi-Government and Private Bodies with Public Functions

Twenty-five years ago, the Hong Kong government was lauded as the model of a small, restricted government which was most suited to capitalist economic growth. Since that time, the government and the organizations which it has created have expanded to such an extent that there has been widespread concern that the public sector has grown too large. This article examines the reasons for the rapid growth in the size of the public sector, reflects on the organizational forms outside the traditional civil service that have been adopted, and analyzes the attempts that have been made to reduce the public bureaucracy by corporatizing and privatizing some of the services that it provides. Central to the argument presented is the question of whether an ideological commitment to small government or other functional and political factors have been the critical determinants of organizational change.     

Information Sharing in a Manufacturer–Supplier Relationship: Suppliers' Incentive and Production Efficiency

While there have been vast discussions on the materialistic benefits of continuous improvement from the Toyota and Honda experiences, the academic literature pays little attention to information sharing. In this study, we construct a dynamic adverse selection model in which the supplier privately observes her production efficiency, and in the contractual duration the manufacturer obtains an informative but imprecise signal regarding this private efficiency. We show that despite the disclosure of proprietary information, information sharing may benefit the supplier; the supplier's voluntary participation is more likely to occur when the shared information is rather imprecise. On the other hand, our analysis also reveals that this information sharing unambiguously gives rise to an upward push of the production quantity, and may sometimes lead to an upward distortion that ultimately hurts the supply chain. We also document the non‐trivial impact of the timing of information sharing on the supplier's incentive to participate.     

Logistics and procurement outsourcing in the healthcare sector: A comparative analysis

As outsourcing ventures become more complex, opportunities for synergies and efficiencies increase, but also create longer and more fragmented supply chains which could have disastrous consequences, particularly in a healthcare context. This study investigates the implications of outsourcing on healthcare supply chains by comparing two alternatives: outsourcing from public-to-private and outsourcing from public-to-public. A conceptual framework, adapted from previous literature, has been employed to provide a comprehensive overview of the phenomenon and consider the implications of logistics and procurement outsourcing on the healthcare supply chain structure and performance. The study presents a European cross-country comparison, analysing both the National Health Service (NHS) outsourcing in England (public-to-private outsourcing) and the Regional Health Service (RHS) outsourcing in the Tuscany region (Italy) (public-to-public outsourcing). Specificities and commonalities of the two outsourcing experiences provide suggestions for managers and policy-makers and enhance the current knowledge of outsourcing in the public healthcare sector.     

Importance of issues related to RFID-enabled healthcare transformation projects: results from a Delphi study

Despite the high operational and strategic potential of Radio frequency identification (RFID) technology in terms of increased healthcare efficiency and effectiveness, and better decision-making, its adoption and use within health care remain fairly low, mainly because of the challenging nature of RFID projects. Further, scholarly research has yet to identify key issues related to RFID projects. The present study intends to fill this knowledge gap in the literature by identifying and rating key issues related to RFID-enabled healthcare transformation projects through a panel of experts using four rounds of the Delphi study. Finally, implications for practice and research are discussed.     

Public sector managers: the decision to leave or remain in a job

The public sector faces a grave problem as far as managerial retention as the result of the increasing number of retirements and of voluntary resignations. Despite the vital interest in managerial turnover in the public sector, research is scarce. This study, which increases our understanding of why public sector managers leave their positions, takes a qualitative and narrative research approach in examining voluntary turnover. Interviews were conducted with operations managers (in education, social care, and technical activities) at three Swedish municipalities. We identify a multitude of environment push and pull factors with a focus on administrative support, supervisory support and illegitimate tasks. The narratives of managerial turnover reveal the complexity of the decision to leave or remain in a job, containing a mixture of push and pull factors, negative feelings, unmet expectations and extraordinary events. Three possible HRD actions to decrease undesirable managerial turnover are identified: re-work organizational structures; re-model job characteristics; and re-examine managerial turnover decisions as a long and complex process. Our hope is that the findings are used for ultimately create healthy organizations.     

Cyclicality of capital-intensive industries: a system dynamics simulation study of the paper industry

This paper provides a view on the cyclicality of capital-intensive industries that could add considerably to our understanding of how cycles in prices, profits and capacity come about. Previous studies of business cycles focus on macro-economic systems or on the agricultural sector. Causes for fluctuations are typically believed to be mainly exogenous in nature. We seek to extend the existing literature on industrial cycles by developing a model that incorporates endogenously generated cyclicality. A simulation model of the paper industry is developed, and validated on the basis of data for the US paper industry.     

Using simulation to manage project supply chain in the offshore oil and gas industry

This paper is aimed at comparing simulation against spreadsheets as decision support tools to properly manage project supply chain in the offshore oil and gas industry. The paper presents a case study related to the problem of sizing a chain for pipeline laying from an offshore field in the Barents sea to the Russian coast. Results obtained through a spreadsheet developed by an oil and gas company have been compared to the ones gathered from an ad hoc simulation model. A simulation model with no stochastic variable has been introduced: results are quite similar to the ones of the spreadsheet, which allowed to validate the simulation model. However, the spreadsheet cannot take into account the continuous move of the pipe-lay vessel while laying the pipes and it does not consider stochastic variables whose effect in real life is not negligible. Both weaknesses above are discussed.     

Improvement culture in the public mental healthcare sector: evaluation of implementation efforts

Abstract

The Danish public healthcare system has been forced to improve performance in terms of better service and lower costs. One regional Danish public healthcare organization has systematically implemented an improvement culture in its psychiatry sector. This research paper contains an evaluation of the organization’s transformation journey towards continuous improvement in psychiatry. The study was based on twenty-five personal interviews, two group interviews and four focus group interviews with centre managers, doctors, psychologists, psychiatrists, nurses and medical personnel in two of the ten psychiatry centres in the region. The objectives of implementing an improvement culture were to create better service for patients and to improve efficiency. Findings indicate that a number of critical success factors and barriers exist in mental healthcare and that even though a number of resources was invested up front, adjustments of the implementation process were needed from centre to centre. Furthermore, the implementation of a lean culture had some positive effects on treatments. In particular, internally, efficiency improved in some areas, creating a common view of what creates value and how to make improvements. Involving different groups of specialists in the implementation of an improvement culture is important. However, the achievement of continuous improvement efforts could be challenging, as results can be difficult to quantify. The novelty of the paper lies in the fact that data is collected from different groups of employees (from both managers’ and employees’ perspectives) on the effects of a full-scale implementation of an improvement culture in public mental healthcare.     

Psychosocial risk assessment: Measurement invariance of the UK Health and Safety Executive's Management Standards Indicator Tool across public and private sector organizations

Abstract

This study provides evidence to support the validity of the UK Health and Safety Executive Management Standards Indicator Tool, which is widely used in the UK by organizations to test for stress-related working conditions. A large pooled data set was collected from 137 UK organizations (N=67,347) to test the factor structure of both the original 35-item seven-factor instrument and a new shorter 25-item version. The results showed that the tool was a good fit to the data for both versions. Further analysis examined the factor structure of the Indicator Tool by splitting the data set into both public and private sector organizations. Tests for measurement invariance showed that both versions of the Indicator Tool provided a good fit to the data. The final sequence of analysis showed that the measurement structure of both the 25-item and 35-item scales was also invariant across small-, medium- and large-sized organizations. The current study provides percentile tables for both the public and private sectors so that organizations can compare their scores against UK national benchmarks. Overall, this study validates both the full and the short versions of a valuable and reliable diagnostic instrument for use in a variety of organizations.     

Workforce localization in the Kingdom of Saudi Arabia: issues and challenges

Despite some progress, the issue of equality at work remains more of an aspiration than achievement for organizations in developed economies across the world. In the UK, the debate on equality at work has been rekindled with a Labour government taking office, in 1997, with a commitment to equality generally and for women specifically. Fuelling the debate is the notion of managing diversity, which has emanated from the USA in recent years. This article seeks to explore the current nature of equality at work in the UK and gauge if managing diversity is in any way manifest in current organizational approaches to equality management. The exploration is rooted in four case-study organizations and is conducted through the lens of key organizational stakeholders. Beyond exposing the contemporary nature of equality at work in the case-study organizations, the empirical work allows the issues involved in the implementation of managing diversity in the UK context to be signalled.     

Mobilising knowledge across organisational boundaries: addressing human issues in the telecommunications industry

The key question addressed in this research is ‘how can we effectively manage and mobilise knowledge in the extended enterprise?’. We explore how knowledge sharing and transfer occur when developing new products, with special reference to the telecommunications industry. The benefits of implementing knowledge management strategies have been proven but research has largely focused on technology as a solution. Working together with European-based telecommunication companies, we focus instead on the softer, human issues. The main human barriers identified include international differences, accuracy and protection of knowledge, maintenance of communication channels, lack of time, fear of penalties and market position.     

Optical services in the UK: A study of a professional labour market

What is the optimum size of a profession and how should it be determined? If norms about working standards exist and if it can be assumed that its geographical distribution and organisation are optimal, then man-power planning can be reduced to an arithmetical exercise; and the ideal number of places offered on qualifying courses in Colleges and Universities will be determined by pass-rates. However, in most cases, the problems are more complex. A proper concern for professional freedom leads society to tolerate wide variations in professional behaviour and working practice. One aim of policy, whether developed by a Government department or by a professional association or both, may be to promote efficiency, but not at the expense of individual discretion. In such circumstances, working norms do not exist. If, in addition, there is little hard information about the extent of part-time working, actual working practices and so on, it is difficult at first to see how to decide the future size of the profession. The aim of this paper is to illustrate how a simulation exercise combined with a sensitivity analysis was able to contribute to the solution of this problem in the case of one profession, that of opticians. It is hoped that the approach can be adapted to deal with similar problems in other professions who sell their services directly to the public.     

Task parallelism in distributed supply organizations: a case study in the shoe industry

This paper describes the application of the parallel integration evaluation model (PIEM) in an industrial case study. The PIEM model is based on modelling the interactions among supply network parties. It generates the parallel configuration of production and supply servers yielding the minimum total production and supply time/cost for the system, Φ. The design solution recommended by the model obeys the tradeoff that parallelism introduces into the networked supply operating system: while direct-production/supply time Π decreases, the overhead of interaction time among the networked parties, T, increases. The interaction time comprises two delay generating factors, limiting the implementation of massively parallel supply networks: the delay due to communication, negotiation, and coordination among the parties, K, and the congestion delay Γ at shared resources in the supply network. These two types of delay factors are positively correlated with the network's degree of parallelism, Ψ, and they affect inversely the total production supply and delivery time of the organization. The PIEM model has been applied to the case of a globally distributed shoe supply network. The resulting recommendations yielded significant savings of about 35% of the annual operating costs. Following the success of this case study, the model has been generalized and implemented as a supply network design optimization tool.     

Towards New Public Management in Greek Public Organizations: Leadership vs. Management,and the Path to Implementation

In the beginning of the 21st century, when the notion of constant transformation is so frequently invoked, organizational change in the public sector is gaining increased attention. Responding to regulatory, economic, competitive and technological shifts, the challenge of reorganization is universal for all public organizations. This paper aims to explore the shift from Traditional to New Public Management (NPM), as well as the driving forces (such as the information economy, the need for better public performance, the opening of global markets, greater knowledge intensity etc.) that lead to the formulation of transformational programs to Greece. A presentation of a transformational program called Politeia, will be provided, analysed and compared to previous efforts. Finally, we address the important role of leadership and management in Greek public organizations that want successful to implement any change effort successfully.     

New manufacturing technology implementation: a study of the Thai automotive industry

The purpose of this study is to develop the conceptual framework for new manufacturing technology (NMT) implementation. Scales representing management activities within four stages (adoption, pre-implementation, implementation, and post-implementation evaluation) of the framework were developed. Data from the survey of 149 Thai automotive manufacturers were used to test for content validity and reliability of those scales. Then, factor analysis was applied to validate and confirm the construction of the framework of each stage. The result of data analysis indicates four stages of NMT implementation, consisting of (a) determining reasons for NMT adoption, (b) monitoring and justifying whether a certain NMT should be adopted, (c) adapting an existing organisational culture while implementing proper project management approach, and (d) evaluating an effectiveness of NMT implementation. This finding can be adopted by the manufacturers to assist them in the adoption and implementation of NMT in their manufacturing environment.     

The Taiwan system of innovation in the tool machine industry: a case study

Recent evidence suggests that the Taiwan’s machine tool industry as a whole is prominent in the world, ranking sixth in output and fifth in exports. This paper explores the current status and features of Taiwan’s national systems of innovation (NSI) for its machine tool industry. It is suggested that five major elements of the NSI explain the extensive diffusion of new technologies in the industry, namely: industry clusters, educational system, bridging institutions, government policy, and global business environment. Further, the structural and institutional problems of the innovation system are identified. Future directions of technology development are also discussed.     

Linking hybrid systems to ACD models: a case study in the fibre-glass industry

This paper is aimed at formalising and testing a model for hybrid systems where the interactions between the continuous process parts and the manufacturing sub-systems are given by minor stoppages. The proposed approach consists in representing the effects of the continuous process dynamics on discrete manufacturing sub-systems by means of autoregressive conditional duration (ACD) models originally conceived to treat high-frequency and irregularly spaced financial transaction data. The model has been applied to a real-life furnace and spooling-bushing department system of a fibre-glass production plant. Results conclude that the ACD-based model proved useful for representing the occurrence of fibre-glass breakage on the spooling-bushing machines and, in more general terms, that the proposed methodology could be really suitable for the logical modelling of the hybrid production systems where the relationships between the continuous and the discrete parts are given by the occurrence of minor stoppages.