On the choice of the prior distribution in hypergeometric sampling

Information in a statistical procedure arising from sources other than sampling is called prior information, and its incorporation into the procedure forms the basis of the Bayesian approach to statistics. Under hypergeometric sampling, methodology is developed which quantifies the amount of information provided by the sample data relative to that provided by the prior distribution and allows for a ranking of prior distributions with respect to conservativeness, where conservatism refers to restraint of extraneous information embedded in any prior distribution. The most conservative prior distribution from a specified class (each member of which carries the available prior information) is that prior distribution within the class over which the likelihood function has the greatest average domination. Four different families of prior distributions are developed by considering a Bayesian approach to the formation of lots. The most conservative prior distribution from each of the four families of prior distributions is determined and compared for the situation when no prior information is available. The results of the comparison advocate the use of the Polya (beta-binomial) prior distribution in hypergeometric sampling.     

Why Does Cell Implementation Stop? Factors Influencing Cell Penetration in Manufacturing Plants

There is little understanding as to why firms have various degrees of cell usage. The intent of this study was to identify factors that had arrested continued implementation of cells at surveyed manufacturing plants. We found no dominant factor that had prevented the firms from continued cellularization. However, by sub‐dividing the plants into those with low and high degrees of direct labor hours spent in cells, short and long experience with cells, and those with and without plans for further cells, a clearer pattern emerged. The inability to find families with high and stable demand, lack of time to implement more cells, the existence of service processes, and the difficulty of cost justifying new cells were the most important factors, although their relative importance varied. The findings support the notion that cellular manufacturing has broad applicability as a form of work organization and that cell users pursue further implementations until no more viable cells with sufficient utilization, demand stability, or economic value can be found.