RFID for Better Supply‐Chain Management through Enhanced Information Visibility

Mostly fueled by mandates, adoption, and implementation of the RFID, technology in the retail industry is growing rapidly. At these early stages of adoption, one puzzling issue for retailers and suppliers is the compelling business case for RFID. In order to explore the potential business case for RFID, we conducted a case study using actual RFID data collected by a major retailer for the cases shipped by one of its major suppliers. We show the physical layout of the RFID readers on a partial supply‐chain covering product movement from distribution centers to retail stores. First, in the analysis phase, we identify several performance metrics that can be computed from the RFID readings. Next, using this RFID data, we compute the values of those performance metrics. These values represent mean time between movements at different locations. Then, we discuss how these measures can assist in improving logistical performance at a micro supply chain level of operations between a distribution center and a retail store. We present how such information can be valuable to both the retail store operator and the supplier. We also discuss the initial lessons learned from actual RFID data collected in the field, in terms of data quality issues.     

Designing an ADP planning process

A great deal has been written about the frustrations of carrying out long range planning in large organizations. Although far less has been written about ADP planning, similar frustrations (as well as benefits) have been suggested.The case study described in this article deals with the recent experiences of a large, federal regulatory agency— the Food and Drug Administration—in the design and implementation of an ADP planning process from 1974 to the present. Although the process was designed to meet the Agency's specific needs, many of the lessons learned will be useful to others contemplating a process for their organization (public or private).     

Reengineering of a supply chain management system: A case study

A business process reengineering (BPR) project concerning a supply chain management (SCM) system of a heavy machinery manufacturing company has been discussed in this paper. The BPR implementation process model has been described. The principal objective of this project has been to bring about radical changes in the mind sets, management styles and systems of a very mature but large organization in India. The implementation process has been very successful because the model has been explored by an organizational development initiative. BPR is both feasible and worthwhile in business only when ideas and ideals are put willingly in practice; and is practised in a collaborative mode to get closer to the people, especially at the floor level, and to customers and suppliers.     

Implementing an RFID-based manufacturing process management system: Lessons learned and success factors

A growing number of organisations are using radio frequency identification (RFID) technology to improve their manufacturing processes. A case study approach is used to explore the development of an RFID-based manufacturing process management system in a garment factory in China. The results indicate that both technology push and need pull factors influence the garment factory's intention to adopt RFID technology. The technology push factors include relative advantage, compatibility, complexity, extendibility and the cost of the technology, whereas the need pull factors include competitor and customer pressure. We identify eight factors for the successful implementation of an RFID-based manufacturing process management system, namely, vendor selection, organisational motivation, cost/benefit evaluation, top management support, user involvement, the extent of progress supervision, staff competence and training, and policy, structure and operating process compatibility. This in-depth case study details the organisation's experience and identifies the challenges it faces and important issues in the development and implementation of the system. Implications for academics and practitioners are discussed.     

What makes search fund entrepreneurship different in Europe?

Ownership transition is an increasingly relevant decision in small businesses because millions of owners in the largest world economies are reaching retirement age without a successor. As a result, entrepreneurship through acquisition—becoming an entrepreneur through the acquisition of an existing business and growing it much like a startup—is likely to accelerate in the coming years. In contrast to traditional entrepreneurship, where the entrepreneur comes up with an idea and then grows it into a company, the idea of entrepreneurship through acquisition is embedded in the acquired company. In this article, we share our findings from a research project that tracked first-time entrepreneurs looking to acquire businesses in four European countries. These entrepreneurs put in “sweat equity” and used the “search fund” model, whereby investors funded their search expenses and provided funds for an acquisition. However, implementing the search fund model, originally created in the United States, was not straightforward in Europe. Search funders faced novel challenges in investor-entrepreneur (i.e., principal-agent) relationships and the search process. Our study identifies these challenges, the responses from our search fund sample, the lessons learned, and a novel framework to conceptualize a search fund playbook specific to Europe. These experiences hold valuable lessons for those who pursue entrepreneurship through acquisition and help stimulate new research questions for scholars.     

Simulation Modeling and Analysis: A Collateral Application and Exposition of RFID Technology

RFID technology provides in‐depth, real‐time visibility into the status of assets throughout the supply chain. However, the deployment of RFID technology may have collateral value in the high‐quality data generated by these assets. This study explores the potential value of RFID data for tactical and strategic purposes and the redesign of processes within supply chain through the deployment of simulation modeling and analysis. We present a simulation study conducted at a regional hospital for which data related to trauma patient movement was collected with an RFID‐based system. We find that not only does this data serve as the basis for successful simulation modeling, but that RFID technology may address several data‐related challenges previously identified in the simulation literature.     

Misplaced Inventory and Radio‐Frequency Identification (RFID) Technology: Information and Coordination

Misplaced inventory is a major operational problem in many supply chains. Radio‐frequency identification (RFID) technology has been publicized as a promising solution for the misplaced inventory. Adoption of this technology has a fixed cost and variable cost of implementation, which can cause incentive issues in the supply chain. In this paper, we consider a supply chain under misplacement of inventory subject to uncertain demand. We study both centralized and decentralized cases and identify the conditions to coordinate the supply chain under implementation of RFID. We show that the incentives of the parties for investing in the technology are not perfectly aligned in the existence of the fixed cost of investment. Based on the relative payments of the parties for the fixed cost of investment, the incentives to adopt RFID can be characterized into regions, where we observe only one party or two parties benefiting from the technology when the tag price falls in a region specified in the paper. We further establish the effects of changes in mean and variance of a uniform demand on the incentives for investing in RFID and find that the incentives of the firms may indeed decrease as demand becomes more variable.     

Implementing an improved inventory control system in a small company: a case study

The paper presents the implementation of an improved inventory management control system in a small company. The project took place at Trojan Mine, a company involved in mining mineral resources. Firstly, a conceptual framework for the design of an inventory control management system is developed. Secondly, a very effective user-friendly inventory control tool for determining the category A items was developed using EXCEL spreadsheet; a tool that is an asset to the company since it can be used in future. Finally, key performance indicators were also established to give benchmark to operations. The improved inventory control management system developed is found to offer improvement to the performance of the company since capital tied up in overstocking items of high annual usage value is released.     

Reference model for implementing an MRP system in a highly diverse component and seasonal lean production environment

Companies are currently choosing to integrate logics and systems to achieve better solutions. These combinations also include companies striving to join the logic of material requirement planning (MRP) system with the systems of lean production. The purpose of this article was to design an MRP as part of the implementation of an enterprise resource planning (ERP) in a company that produces agricultural implements, which has used the lean production system since 1998. This proposal is based on the innovation theory, theory networks, lean production systems, ERP systems and the hybrid production systems, which use both components and MRP systems, as concepts of lean production systems. The analytical approach of innovation networks enables verification of the links and relationships among the companies and departments of the same corporation. The analysis begins with the MRP implementation project carried out in a Brazilian metallurgical company and follows through the operationalisation of the MRP project, until its production stabilisation. The main point is that the MRP system should help the company's operations with regard to its effective agility to respond in time to demand fluctuations, facilitating the creation process and controlling the branch offices in other countries that use components produced in the matrix, hence ensuring more accurate estimates of stockpiles. Consequently, it presents the enterprise knowledge development organisational modelling methodology in order to represent further models (goals, actors and resources, business rules, business process and concepts) that should be included in this MRP implementation process for the new configuration of the production system.     

A Field Study of RFID Deployment and Return Expectations

Radio Frequency Identification (RFID) technology promises to transform supply chain management. Building on previous research in information systems and supply chain management, this paper proposes a theoretical framework for RFID adoption and benefits, and tests the framework using data on u. s. firms. Our analysis suggests that there is a positive association between information technology (IT) application deployment and RFID adoption. We find that RFID implementation spending and partner mandate are associated with an expectation of early return on RFID investment, and a perceived lack of industry‐wide standards is associated with an expectation of delayed return on RFID investment. These results suggest that firms with broad IT application deployment and a critical mass of RFID implementation spending are more likely to report early returns from RFID deployments. This paper extends previous research to understand the relationship between organization characteristics and adoption and expected benefits of the emerging RFID technology.     

Learning and Organization in the Knowledge‐Based Information Economy: Initial Findings from a Participatory Action Research Case Study

This paper reports on an ongoing, multiphase, project‐based action learning and research project. In particular, it summarizes some aspects of the learning climate and outcomes for a case‐study company in the software industry. Using a participatory action research approach, the learning company framework developed by Pedler et al. (1997) is used to initiate critical reflection in the company at three levels: managing director, senior management team and technical and professional staff. As such, this is one of the first systematic attempts to apply this framework to the entire organization and to a company in the knowledge‐based learning economy. Two sets of issues are of general concern to the company: internal issues surrounding the company's reward and recognition policies and practices and the provision of accounting and control information in a business‐relevant way to all levels of staff; and external issues concerning the extent to which the company and its members actively learn from other companies and effectively capture, disseminate and use information accessed by staff in boundary‐spanning roles. The paper concludes with some illustrations of changes being introduced by the company as a result of the feedback on and discussion of these issues.     

RFID as an Enabler of Improved Manufacturing Performance*

The use of radio frequency identification (RFID) versus bar coding has been debated with little quantitative research about how to best use RFID's capabilities and when RFID is more advantageous. This article responds to that need by qualitatively and quantitatively analyzing how RFID facilitates increased traceability and control in manufacturing, which in turn enables the use of more lot splitting and smaller lot sizes. We develop insights about operating policies (RFID vs. bar‐code tracking mechanisms, extent of lot splitting, and dispatching rules) and an operating condition (setup to processing time ratio) that affect the mean flow time and proportion of jobs tardy in a job shop. A simulation model is used to control factors in the experimental design and the output is evaluated using analysis of variance. The results show the following: (i) performance worsens when bar coding is used with extensive lot splitting, (ii) process changes such as extensive lot splitting may be required to justify RFID use instead of bar coding, (iii) the earliest operation due date dispatching rule offers an attractive alternative to other rules studied in previous lot splitting research, and (iv) the performance improvements with RFID and increased lot splitting are larger when the setup to processing time ratio is smaller. In a broader context, we fill a research void by quantitatively showing how RFID can be used as an advanced manufacturing technology that enables more factory automation and better performance along several dimensions. The article concludes by summarizing the results and identifying ideas for future research.     

Item‐Level RFID in the Retail Supply Chain

Analyzing the proliferation of item‐level RFID, recent studies have identified the cost sharing of the technology as a gating issue. Various qualitative studies have predicted that conflict will arise, in particular in decentralized supply chains, from the fact that the benefits and the costs resulting from item‐level RFID are not symmetrically distributed among supply chain partners. To contribute to a better understanding of this situation, we consider a supply chain with one manufacturer and one retailer. Within the context of this retail supply chain, we present analytic models of the benefits of item‐level RFID to both supply chain partners. We examine both the case of a dominant manufacturer as well as the case of a dominant retailer, and we analyze the results of an introduction of item‐level RFID to such a supply chain depending on these market power characteristics. Under each scenario, we show how the cost of item‐level RFID should be allocated among supply chain partners such that supply chain profit is optimized.     

Managing Supply Chain Execution: Monitoring Timeliness and Correctness via Individualized Trace Data

Improvements in information technologies provide new opportunities to control and improve business processes based on real‐time performance data. A class of data we call individualized trace data (ITD) identifies the real‐time status of individual entities as they move through execution processes, such as an individual product passing through a supply chain or a uniquely identified mortgage application going through an approval process. We develop a mathematical framework which we call the State‐Identity‐Time (SIT) Framework to represent and manipulate ITD at multiple levels of aggregation for different managerial purposes. Using this framework, we design a pair of generic quality measures—timeliness and correctness—for the progress of entities through a supply chain. The timeliness and correctness metrics provide behavioral visibility that can help managers to grasp the dynamics of supply chain behavior that is distinct from asset visibility such as inventory. We develop special quality control methods using this framework to address the issue of overreaction that is common among managers faced with a large volume of fast‐changing data. The SIT structure and its associated methods inform managers on if, when, and where to react. We illustrate our approach using simulations based on real RFID data from a Walmart RFID pilot project.     

Application of Design for Six Sigma tools in telecom service improvement

Abstract

Six Sigma is a systematic methodology aiming at operational excellence. Under the general umbrella of Six Sigma, DMAIC and Design for Six Sigma are usually be implemented to improve product and process quality. Facing quality bottlenecks in traditional improvement projects, tools in Design for Six Sigma is an efficient way to achieve better results. In this paper, to meet the high-quality requirement of key clients, a telecom service system improvement project is illustrated by redesigning troubleshooting and service delivery processes in company Shanghai Telecom Co. Ltd. (ST) with the aid of some Design for Six Sigma tools. Company ST improved its service system performance and obtained significant economic benefits from this project implementation. Four key factors that affect the success of Design for Six Sigma tools application in improvement projects are discussed at last.     

Achieving Lean Objectives through RFID: A Simulation‐Based Assessment*

Lean concepts in manufacturing have focused on elimination of wastes within the business processes. This study investigates whether addition of radio frequency identification (RFID) technologies in the manufacturing process can complement Lean manufacturing. Specifically, will more accurate information from RFID‐based solutions help achieve the goals of Lean initiatives in manufacturing plant performance and, if yes, in what specific ways? The analysis is based on a comparison of the following three automatic identification technologies: existing (one‐dimensional) 1D barcode, 2D barcode, and the use of RFID in a real job‐shop environment where items are manufactured for meeting actual demand and also future forecast demand. We analyze the effect of information visibility in these settings by examining the various types of wastes that are typically addressed in Lean initiatives. The results of a discrete‐event simulation suggest that employing RFID in Lean manufacturing initiatives can reduce some wastes but not necessarily all types of waste. We observe an increase in overproduction waste in our setting, although other wastes are reduced with improved information visibility. Overall, our results indicate that manufacturing organizations should explore information visibility through RFID to enhance their Lean initiatives.     

The Efficacy of Action at a Distance as a Control Mechanism in the Construction Industry When a Trust Relationship Breaks Down: an Illustrative Case Study

A paper published by one of the authors (Woodward and Squires, 1996), described a situation where the accounting information system used by a geographically‐remote project manager to report progress on a project to his headquarters proved inadequate for that task. The inadequacy was particularly relevant in the reported case, in that the object project was one of considerable significance to the company, being the largest and most complex it had ever undertaken. While the earlier paper concentrated initially upon identifying the perceived shortcomings in the organization’s accounting information system, and subsequently upon delineating the proposal for a ‘workable’ solution thereto, the purpose of the present paper is rather to analyse the situation earlier reported, in the context of a perceived breakdown in the trust relationship existing between the project manager and his superior, the company’s managing director. The managing director trusted his subordinate, although it seems apparent retrospectively that the trusting relationship existing was abused. While the underpinning precept of trust is thus fundamental to the present analysis, it is additionally necessary to utilize as relevant concepts: the veracity of the company’s control mechanism (via the concept of action at a distance) to adequately report what was happening remote from headquarters; the assumption that the project manager, as agent, had the potential to abuse his position; and, finally, that the project manager’s professional affiliation was probably insufficiently strong to sustain self‐control based upon ‘clan’ considerations. It also emerges from the analysis that multiple, rather than single, trust relationships were at work.     

Bridging the awful gap between strategy and action

This article describes the lessons learned from a study carried out within British Telecommunications as part of the author's doctoral research programme. It was found that strategy was formulated and implemented, with direct action taken and resources commited, by Divisional managers at all three organizational levels in BT so that implementation did not always follow the lines intended by the HQ strategic planners. Implementation was found to be an interactive rather than a rational/sequential process. Marked variations in practice were observed and explanations for these are offered. The relative success of the strategies differed widely, both overall and within the divisional field units. The manner of implementation and factors managers perceived to help and hinder it were studied. Success or failure was felt to hinge on getting a few basics right: resources, organizational ‘fit’, historical performance and the expectations it generated (track record), information and support, market acceptance, technical competence, consistent goals and top management support.     

Regulating Shareholder Value: A Case Study of the Introduction of Value–based Measures in a Water Company

The implementation of a value–based measurement system within a privatized UK regional water company is examined by means of a longitudinal case study. Evidence is presented of how the system was developed within the context of a regulatory environment, which presented special considerations to the company in designing and implementing an appropriate system. In particular the paper considers the implementation issues surrounding the management of the introduction of the value–based measures at the operational level. The authors describe the drivers behind the introduction of the new system and the technical, political and cultural challenges raised by its implementation.