Coordinating External Manufacturing of Product Modules*

Product modularization has changed gradually from mainly being a way to bring strategic flexibility into product design, to becoming a means to reach new suppliers in a globalized world. Use of external suppliers is facilitated by the “embedded coordination” brought by standardized module interfaces which reduce the interdependence between modules manufactured by different suppliers. However, the distance between design and manufacturing is increased by heavy reliance on suppliers, and requires coordination between design and manufacturing. Hence, this article aims to identify appropriate mechanisms to enable coordination of external manufacturing of product modules. The investigation is based on two case studies in one manufacturing company that has for long relied heavily on external suppliers. The case studies identify different means, coordination mechanisms, of handling the increased distance between design and manufacturing. In addition to organizational solutions, various intermediaries including especially the supply chain function act as bridges between design and manufacturing. The appropriate mechanism to use is decided by the character of the product and the degree of upgrading. We recommend openness to adaptation to situation dynamics rather than investment in optimizing the level of integration with a particular supplier.     

Structuring Supplier Involvement in New Product Development: A China–U.S. Study

Buying and supplying organizations rely on each other for developing better products in an efficient manner, which explains the popularity of involving suppliers in new product development (NPD). However, such involvement is not always successful, partially due to the challenges of structuring a buyer–supplier team to manage joint dependence and dependence asymmetry. This study adopts an organizational dependence view to examine how three types of intergroup structures—administrative (formalization and centralization), task (task interdependence), and physical (colocation)—influence project performance and buyer learning in NPD projects. Furthermore, adopting a contingency theory perspective, we study whether the national context moderates the effects of intergroup structures on project outcomes. We adopt a two‐group structural equation modeling approach to test hypotheses with survey responses from a sample of NPD projects in the United States (US) and China. Results show different ways in which intergroup structures influence project performance and buyer learning in the two culturally, economically, and institutionally distinct countries. We discuss the implications of these new findings and present directions for future research.     

Managing a Portfolio of Product Development Projects under Resource Constraints

Managers of product development (PD) project portfolios face difficult decisions in allocating limited resources to minimize project or portfolio delay. Although PD projects are highly iterative (cyclical), almost all of the vast literature on project scheduling assumes that projects are acyclical. This article addresses this gap with a comprehensive analysis of 31 priority rules (PRs) on 18,480 portfolios containing 55,440 iterative projects. We find that the best PRs for iterative project portfolios differ significantly from those for acyclical ones, and that the best PRs at the project level differ from those at the portfolio level. The best PR depends on project and portfolio characteristics such as network density, iteration intensity, resource loading profile, and amount of resource contention. In particular, by amplifying the effects of iteration, high‐density networks hold dramatically different implications for iterative projects. Moreover, the best PR also differs depending on whether the objective is to minimize the average delay to all projects or to minimize delay to the overall portfolio. Thus, a project or portfolio manager who uses the same PR on all occasions will exhibit unnecessarily poor performance in most cases.     

辽宁省GDP与能源消耗关系的实证分析

作为世界第二大能源消费国,中国的经济发展离不开能源的消耗。辽宁省是工业大省,其经济增长对能源消耗的依赖程度日益加剧,然而这并不利于经济的可持续发展。对1990—2013年辽宁省GDP和能源消费的统计数据进行相关性分析,发现辽宁省的能源生产出现严重供不应求的局面,其能源消费增长过快同能源供给不足的矛盾日益加剧,GDP同能源消费总量互为正相关的线性关系。指出辽宁省需要通过调整产业结构来降低能源消耗相对水平,提高能源利用效率。     

Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices

Prior research has argued that external knowledge sourcing can be supported by effective strategic human resource (HR) practices. However, whether and how the adoption of new organizational mechanisms in group settings influences the relationship between external search strategies and innovation performance represents an unanswered question. Therefore, the present paper aims to explore the relationship between the breadth of external knowledge sourcing (i.e., external search breadth) and product innovation by unveiling the moderating effects of strategic HR practices, as represented by the implementation of heterogeneous work groups and brainstorming sessions. On the basis of data from the Italian Innovation Survey, our results reveal that external search breadth is curvilinearly (inverted U) related to product innovation, and its negative effects occur later in the presence of heterogeneous work groups and brainstorming sessions.     

Some results on the regularity in a single replicate design

A necessary and sufficient condition is given for a single replicate design to be regular with respect to a given factorial effect. This condition is applied in establishing necessary and sufficient condition for the regularity of an i order factorial effectl > 1, when a subset of factorial effects are known to be regular.     

Recurrence relations for moments of progressive type-II right censored order statstics from burr distribution

In this paper some recurrence relations between moments of progressive Type-II right censored order statistics from doubly truncated Burr distribution are established. These recurrence relations would enable one to obtain all the single and product moments of Burr progressive Type-II right censored order statistics in a simple recursive manner.     

A Class of Multiplicative Estimators of Laspeyres Price Indexes

Publication of indexes measuring changes in prices of retail, wholesale, export, and import items is an important part of many governmental statistics programs. One form of price index that is often used is the fixed-base Laspeyres, in which a fixed market basket of goods is priced over time. This article introduces a new class of multiplicative estimators of Laspeyres indexes. The optimum within the class is derived for long-term price change and compared with two other members of the class when used for estimating both long-term and short-term change. Theoretical properties are derived under a model in which long-term relative price changes for individual items have common within-stratum means and are correlated over time. Theory for long-term and short-term change estimators is tested in a simulation study in which a large number of stratified probability samples is selected from a population extracted from items priced for the U.S. consumer price index.     

Beyond the dollar

The international reserve regime based mainly on the US dollar has served the world well for decades, but it faces an uncertain future as the economic hegemony of the United States is increasingly challenged by the emergence of new economic powers. The regime is flawed fundamentally, moreover, because additions to the supply of the main reserve asset require the United States to run balance-of-payments deficits, which tend to undermine confidence in the dollar. This paper proposes a transformation of the reserve regime that would cause Special Drawing Rights (SDRs) issued by the International Monetary Fund to become the main reserve asset. An orderly transition would be achieved by creating a Substitution Account into which official holders of dollars could deposit them in exchange for SDRs.     

The Legitimate Role of Inspection in Modern SQC

For many years there has been much discussion regarding the appropriateness of “inspection” and “acceptance sampling” as tools for quality and productivity. This expository article collects and attempts to put into perspective some of the main points of controversy regarding these techniques.