Escalation: The Role of Problem Recognition and Cognitive Bias

Escalation of commitment to a failing course of action is an enduring problem that remains central to the study of managerial behavior. Prior research suggests that escalation behavior results when decision makers choose to ignore negative feedback concerning the viability of a previously chosen course of action. Previous work has also suggested that certain cognitive biases might promote escalation behavior, but there has been little attempt to explore how biases other than framing affect escalation. In this article, we explore the extent to which decision makers actually perceive negative feedback as indicative of a problem and how this influences their decision to escalate. Although problem recognition and cognitive biases have been intensively studied individually, little is known about their effect on escalation behavior. In this research, we construct and test an escalation decision model that incorporates both problem recognition and two cognitive biases: selective perception and illusion of control. Our results revealed a significant inverse relationship between problem recognition and escalation. Furthermore, selective perception and illusion of control were found to significantly affect both problem recognition and escalation. The implications of these findings for research and practice are discussed. To improve problem recognition and reduce the incidence of escalation, practicing managers should implement modern project management practices that can help to identify and highlight potential problems while guarding against these two key cognitive biases that promote the behavior.     

Master Scheduling in Assemble-To-Order Environments: A Capacitated Multiobjective Lot-Sizing Model

Basic characteristics of an assemble-to-order environment make effective master scheduling extremely difficult. Limited resource capacities and dynamic customer end-item demand contribute to the complexity of the master production scheduling problem. To gain flexibility and responsiveness within this system, the master production schedule (MPS) focuses at the component level. This research proposes a master scheduling technique for manufactured components which combines a multiobjective capacitated multi-item/multi-stage lot-sizing model with an interactive multiple objective optimization solution procedure. To evaluate the model's performance as a realistic and practical master scheduling tool, this study focuses on the National Cash Register (NCR) electronics manufacturing facility in Columbia, South Carolina.     

Order Promising and the Master Production Schedule*

Previous research on material requirements planning (MRP) systems has rarely considered the impact of the master production scheduling method used to promise customer orders and to allocate production capacity. Based on a simulation study of an MRP environment, we show that the correct selection of a master production schedule (MPS) method depends on the variance of end-item demand. In addition, we find evidence that the effectiveness of a particular MPS method can be enhanced by holding buffer inventory at the same level in the product structure as in the MPS.     

Linking Electronic Medical Records Use to Physicians’ Performance: A Contextual Analysis

Electronic Medical Records (EMR) studies have broadly tested EMR use and outcomes, producing mixed and inconclusive results. This study carefully considers the healthcare delivery context and examines relevant mediating variables. We consider key characteristics of: (i) interdependence in healthcare delivery processes, (ii) physician autonomy, and (iii) the trend of hospital employment of physicians, and draw on theoretical perspectives in coordination, shared values, and agency to explain how the use of EMR can improve physicians’ performance. In order to examine the effects of physician employment on work practices in the hospital, we collected 583 data points from 302 hospitals in 47 states in the USA to test two models: one for employed and another for nonemployed physicians. Results show that information sharing and shared values among healthcare delivery professionals fully mediate the relationship between EMR use and physicians’ performance. Next, physician employment determines which mediating variable constitutes the pathway from EMR use to physicians’ performance. Finally, we highlight the impact of shared values between the hospital and physicians in enhancing information sharing and physicians’ performance, extending studies of these behaviors among network partners in industrial settings. Overall, our study shows that EMR use should be complemented by processual (information sharing), social (shared values), and structural (physician employment) mechanisms to yield positive effects on physicians’ performance.     

Labor Utilization Effects of Labor Scheduling Flexibility Alternatives in a Tour Scheduling Environment

This study used a factorial experimental design and a new modeling methodology to investigate the impact of a number of labor scheduling flexibility alternatives and labor requirements characteristics on labor utilization within a tour scheduling environment. Break-placement flexibility and shift-length flexibility were found to be extremely effective in improving labor utilization for all labor requirement distributions used. Flexibility with respect to the number of days included in a tour schedule resulted in substantial improvement in labor utilization for all labor requirements distributions exhibiting daily and/or weekly variation. Surprisingly, virtually no improvement in labor utilization was achieved for any labor requirement distribution by the removal of requirements for consecutive days off. In addition, almost no improvement was found by allowing the shift start time to vary across the working days included in tours. High labor requirement amplitude was found to have a strong adverse effect on labor utilization while longer operational days were associated with improved labor utilization for all labor requirement distributions. We discuss the implications of these results for service operations management and provide suggestions for future research.     

Redesigning a Cellular Manufacturing System to Handle Long-Term Demand Changes: A Methodology and Investigation*

Cellular manufacturing systems have been proposed as an alternative to the job shop since they provide some of the operational benefits of a flow line production process, while retaining to some extent the flexibility of job shops. However, this must be balanced against the possibility of additional initial investments in equipment to form the cells and a certain loss in manufacturing flexibility, particularly in terms of the ability to deal with long-term demand changes. This paper presents a model-based heuristic cell system redesign methodology to deal with such demand changes. The methodology is validated and applied to system designs generated from several data sets published in the literature. Results show that different kinds of demand changes incur distinct kinds of costs. Further, characteristics of cell designs that can handle long-term demand changes at least cost are identified.     

An Evaluation of Capacity Sensitive Order Review and Release Procedures in Job Shops

We investigate the performance of capacity-sensitive order review and release (ORR) procedures in job shop environments that have not been previously explored. Previous research has ignored the case of job shops which must perform to very tight due-dates because of time-sensitive customers. We propose and test a new capacity sensitive ORR procedure called path based bottleneck (PBB) in such environments, along with the modified infinite loading (MIL) procedure which has been shown to work well in several studies. We compare the performance of these two controlled release rules with that of immediate release rule under different conditions of capacity utilization and customer specified exogenous duedates. Our results indicate that PBB performs well in lowering total costs when due-dates are tight, while MIL is a better procedure with relatively loose to medium due-dates. We also show that in many cases, the shortest processing time (SPT) dispatching rule is a superior performer than a due-date based rule like critical ratio (CR); a conclusion which is contrary to the existing research in this area. In addition, the shop floor control policies recommended are shown to be sensitive to the cost structure of the firm. The managerial implications of this research in providing effective shop floor control in job shops operating under tight due-date conditions are also discussed.     

Distinguishing Features of Just-in-Time Systems in the Make-to-Order/Assemble-to-Order Environment*

Few studies of just-in-time (JIT) implementation examine their significance in make-to-order manufacturing environments. This study examines the relative importance of several operating variables that are characteristic features of JIT systems within such environments in North America. The results suggest that the most salient features of JIT for make-to-order and assemble-to-order firms are the elimination of waste (in the form of time and defects), reduced setup time, reduced lotsize, and a smaller pool of suppliers. In addition, the results suggest that the use of non-domestic suppliers can possibly hinder efforts at JIT implementation of materials procurement.     

我国不同经济类型地区深入开展计划生育"三结合"的建议

实事求是地阐述了我国经济贫困地区、欠发达地区和较发达地区深入开展计划生育“三结合”的对策建议     

Nondestructive creation: Entrepreneurship and management research in the study of growth

Economists’ focus on institutions in explaining economic growth, while important, can obscure the significant role played by individual entrepreneurs and the process of entrepreneurship. The prevailing view of entrepreneurship in economics (which continues to shape prevailing public policies) centers on Schumpeter's famous concept of “creative destruction.” In the context of sustained high levels of economic growth, as in the recent American experience, I focus on a different feature of entrepreneurship—“nondestructive creation,” in which the uncoordinated contest of ideas and search for new applications of existing ideas generate growth. And this nondestructive creation should be analyzed and can be fostered.