A Framework for Examining the Interface between Operations and Information Systems: Implications for Research in the New Millennium*

Even though much research has been published in operations and information systems, both functional areas find their roots in other disciplines. While operations management evolved from operations research in the 1960s, the field of information systems is of more recent vintage and traces its original roots to computer science. Both disciplines now naturally have come closer together as information and process-technology-based changes force manufacturing firms to become more efficient and customer focused. Market and technology-driven e-commerce initiatives that are likely to dominate business strategies in the future cannot be successfully achieved without a successful integration of operations and information systems. In this paper, we present a unifying framework that can be used to better understand the management of the functional interface between operations and information systems. We also categorize and highlight the contributions of the articles that appear in this special research focus issue. Finally, research directions that emerge from our understanding of this interface are outlined in an effort to stimulate further thinking and research that can advance our knowledge of this interface area.     

Information-Processing Alternatives for Coping with Manufacturing Environment Complexity

Investment in information systems and technology is often justified as a necessary strategy for coping with the increased complexity and information needs of today/s manufacturing environments. However, the world class manufacturing paradigm suggests that increased complexity is not always necessary to meet the needs of markets and customers. Galbraith/s (1973, 1977) seminal information-processing model is applied to a manufacturing environment, supported by the world class manufacturing paradigm, to test the role of various information-processing alternatives for coping with increased environmental complexity. Moderated regression and multiple discriminant analysis are used to test hypotheses in a sample of 164 manufacturing plants. Environmental complexity was found to be related to manufacturing performance for each of the five dependent variables. This relationship was moderated by at least one information-processing alternative for each dependent variable, including self-contained tasks, lateral relations, and environmental management strategies for reducing manufacturing, supplier, and goal diversity. Investments in information systems and reduction of labor and customer diversity did not moderate this relationship. Practices that were found to be particularly effective in moderating this relationship included the use of multifunctional employees, communication of manufacturing strategy, coordination of decision making, product design simplicity, reduction of parts counts, supervisory interaction facilitation, recruiting and selection for flexible employees, JIT practices, blanket purchase orders, and strong customer relationships.     

Medical savings accounts. Power and choice

As the market becomes more saturated and matures, keeping people healthy will become a bigger source of profits and true health maintenance will become increasingly important. Right now, however, the name of the game is restricting services, particularly in new markets. What is sorely needed is a balance between the individual and organizational agendas, between the individual and society. There is a tremendous opportunity for hospital-physician groups contracting directly with employers using Medical Savings Accounts (MSAs) and catastrophic insurance as a core strategy. Are MSAs a viable insurance vehicle? Some argue that those enrolled in MSAs will put off receiving needed medical care. But it can also be viewed that MSAs, by their very nature, put costs back into the negotiation phase between patients as customers and physicians and hospitals as providers--and save money and resource consumption as patients shop around for competitive prices to do what needs to be done.     

Physician organizations. Part 1: A report from the trenches of a start-up PO

How has Community Health Partners, a physician organization based in Kansas City, turned the corner as it rolls into the second year of operation? The biggest indicator is that CHP hammered out the city's first professional risk contracts and the PO has grown from 23 to more than 50 physician member/owners. Looking back, there are at least 10 reasons why CHP made it this far. These are not reasons you learn about in medical school or an MBA program. There is no one-size-fits-all template for building POs. No fixed organizational chart. No neon signs pointing to the best capital partner. Part I explores five reasons for success, such as having a strong board and physician leadership, as well as educating participating physicians about capitation and affiliating with any hospital or payer that really knows how to partner with physicians. Part 2 will focus on five more lessons learned from the trenches of a start up PO.     

ATSDR Science Panel on the Bioavailability of Mercury in Soils: Lessons Learned

On the basis of discussion and analysis during and following an ATSDR science panel on the bioavailability of mercury in soils, it is apparent that the default assumption of 100% relative bioavailability for mercury-contaminated soils is excessively conservative. However, current knowledge does not allow the development of default assumptions or guidelines for determining relative bioavailability of mercury in soils. Until such default assumptions or guidelines can be developed, site-specific assays of bioavailability, preferably using either animal bioassays or validated in vitro techniques, may provide the best approach for estimating soil-mercury bioavailability.     

A Case Study of Gender Differences in Job Satisfaction Subsequent to Implementation of an Employment Equity Programme

In this research case study, the competing hypothesis of socialization, structural and social role theories were derived and used to explore and compare the job attitudes and satisfaction of women and men in a Canadian insurance company subsequent to voluntary implementation of an employment equity programme. Gender comparisons of both managerial and clerical employees on individual facets of satisfaction indicated the most support for social role theory, some support for structural theory and the least support for socialization theory. These findings indicate that managerial women and men tend to derive work satisfaction from similar sources. The variation in facet results cautions against global conclusions about gender and job satisfaction. Unanticipated consequences such as a 'backlash' (Faludi, 1991) of managerial men and a 'glass escalator' (Williams, 1992) for clerical men were also suggested by the findings in this case. A key implication is the potential benefit to both organizations and managerial women from steps taken to level the structural playing field.     

On the effectiveness of cognitive feedback from an interface agent

The objective of this study was to determine the impact of task information (TI) provided by an interface agent during the idea evaluation and integration step of the problem formulation stage of the problem solving process. The effectiveness assessment was based on solving diagnostic decision problems in the domain of complex industrial machinery. Ten domain experts participated in this study. Decision support was provided by a case-based reasoning system. Findings suggest that TI provided by the interface agent had no effect on the decision maker's performance, nor on the associated cognitive effort. However, a verbal protocol analysis revealed that the ten subjects used the interface agent to verify their decision processes. The results and their implications are discussed with respect to current findings in the area of decision support systems.     

DYNAMIC INTERACTION OF PRICE AND DESIGN QUALITY FOR PRODUCTS WITH CONVEX PRODUCTION COSTS

Price and design quality define value for customers and are often used by firms to position products in the marketplace. Setting price and quality level on a new product for the first time and making appropriate changes over time to these variables to reflect changing conditions in the market requires careful coordination of design, manufacturing, and marketing variables. We present a control theoretic model to study the complex interaction among price, quality, and cost during the life cycle of a product. Our model considers the major design-manufacturing-marketing tradeoffs and helps determine optimal pricing, design quality, and production strategies in a dynamic environment with convex production costs.     

Addition of runs to an s-level supersaturated design

The purpose of the present work is to extend the work of Gupta et al. (2010) to s  -level column balanced supersaturated designs. Addition of runs to an existing E(χ²)-optimal$E({\chi }^2)\mathrm{-}\mathrm{optimal}$ supersaturated design and to study the optimality of the resulting design is an important issue. This paper considers the study of the optimality of the resulting design. A lower bound to E(χ²)$E({\chi }^2)$ has been obtained for the extended supersaturated designs. Some examples and a small catalogue of E(χ²)-optimal$E({\chi }^2)\mathrm{-}\mathrm{optimal}$ supersaturated designs are also presented.     

Female athletic participation and income: evidence from a latent class model

This paper introduces and applies an EM algorithm for the maximum-likelihood estimation of a latent class version of the grouped-data regression model. This new model is applied to examine the effects of college athletic participation of females on incomes. No evidence for an “athlete” effect in the case of females has been found in the previous work by Long and Caudill [12], Henderson et al. [10], and Caudill and Long [5]. Our study is the first to find evidence of a lower wage for female athletes. This effect is present in a regime characterizing 42% of the sample. Further analysis indicates that female athletes in many otherwise low-paying jobs actually get paid less than non-athletes.