Manufacturing Proactiveness and Performance*

Since Skinner's [40] landmark article depicting the manufacturing function as the “missing link” in corporate strategic processes, a portion of the blame for inferior performance in many firms has been attributed to the subordinate strategic position of manufacturing. It has been argued that part of the solution to misalignments between the capabilities possessed by manufacturing and the requirements dictated by customers is for manufacturing to take a more proactive stance. However, little research has been reported which examines manufacturing proactiveness empirically. In this paper, we address this gap by developing an operational definition of manufacturing proactiveness and testing empirically whether a link exists between proactiveness and performance based on data collected from a sample of manufacturers. Based on the manufacturing strategy literature, we identify two major dimensions of manufacturing proactiveness: (1) the degree of manufacturing's involvement in the strategic processes of the business unit; and (2) the degree of commitment to a long-term program of investments in manufacturing structure and infrastructure aimed at building capabilities in anticipation of their need. We develop reliable scales for measuring each of the dimensions of proactiveness and use the data to provide evidence of a clear link between manufacturing proactiveness and business performance. We show that investments in structural programs coupled with either high levels of manufacturing involvement in strategic processes or planned investments in infrastructural programs correlate with higher than average performance.     

Does IO Economics Really Make the Case for Investments in IT: A Rejoinder

The preceding critique [1] of the paper “The Information Problems in Organizations: A Research Model for the Value of Information and Information Systems” [3], reaches general conclusions with respect to the original paper and the applicability of economics to MIS research. These conclusions are based on arguments developed at a different level of analysis than that used in the original paper, and without considering the goals and intent of the original paper. The differences between the critique and the original paper are highlighted.     

Master Production Scheduling Under Rolling Planning Horizons with Fixed Order Intervals

Fixed interval scheduling is studied in the context of a rolling horizon framework that is developed by building on previous work in the master scheduling area. The rolling horizon framework includes a stationary scheduling model which uses the “time fencing’concept by partitioning the planning horizon into three sections. The lengths of these sections and the frequency at which the stationary problem is updated and resolved are discussed as parameters of the rolling horizon model. Two different interpretations of the freeze interval parameter are examined, enabling confirmation and clarification of results presented in an earlier study. Details are given for three methods of calculating safety stocks as a function of rolling horizon parameters, including a method which results in optimal safety stock levels. A comparison of the safety stock methods shows that the constant safety stock method can result in inventories that are significantly above optimal under certain conditions, whereas the constant service level method consistently yields nearly optimal results.     

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.     

A Learning Curve Analysis of Expert System Use*

In this article, we study how an expert system affects novice problem solving in a financial risk analysis domain. We demonstrate that novice performance is improved after exposure to an expert system. Further, we show that novice performance continues to improve when the system is withdrawn. By comparing learning curves for people with exposure to those without, we can assess how much the system has benefitted its users. We demonstrate a quantitative methodology to measure the increment of learning due to the use of an information technology. We also explore the issue of how expertise is transferred from the system to the user.     

The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers: A Comment*

Joglekar and Tharthare [6] presented an alternate approach for minimizing total inventory carrying and ordering costs of a vendor and the purchaser(s). This approach permits the vendor and the purchaser(s) to rationally select their operating policies. Joglekar and Tharthare claimed that their approach is more economical than the joint lot-size approach. In this note we identify some conceptual issues in their approach and demonstrate the superiority of the joint lot-size approach with the help of an example.     

Marketing Communication Intensity Across Industries

Marketing communication intensity (i.e., the ratio of advertising and promotional expenditures to sales) has been an important topic for both business managers and academics. Here, we investigate cross-sectional and time-series variation of communication intensity due to: type of offering (product versus service) and type of market (consumer versus industrial). Overall, we find that both of these factors affect variation of communication intensity across industries and over time. However, the effect of market type is much more dramatic than the effect of offering type. Such knowledge about patterns in communication intensity levels helps managers make decisions about how much to spend on advertising and promotion.     

The Career Advancement Prospects of Managers and Professionals: Are MIS Employees Unique?

The present study examined the career advancement prospects of MIS and non-MIS employees, as well as the relationships of career advancement prospects with job performance evaluations, job satisfaction, career satisfaction, and organizational commitment for MIS and non-MIS professionals and managers. Participants included 134 MIS professionals and managers and 397 non-MIS professionals and managers of a large communications company. The results provided no evidence that MIS employees experience more restricted career advancement prospects than non-MIS employees. In addition, job performance evaluations generally had positive effects on career advancement prospects; career advancement prospects had a number of positive effects on job satisfaction, career satisfaction, and organizational commitment; and job satisfaction and career satisfaction had positive effects on organizational commitment. These findings are related to prior research, suggestions for future research are offered, and implications for the management of MIS employees are identified.     

Constrained Forecasting: Some Implementation Guidelines

Constrained forecasting has become a popular approach to the complex task of predicting future sales. Mixed performance results have been obtained by companies employing constrained forecasting systems software packages which probably reflects the lack of any clear system implementation guidelines. A number of important operational parameters such as the number of product families, criterion used to define product families, number of system levels, etc. must be specified. This study reports on an investigation of two of these parameters: product group size and appropriate grouping criterion. Different tests are performed with the constrained forecasting system and compared to a traditional forecasting approach using product data from the Cummins Engine Company of Columbus, Indiana.     

The Design of a Knowledge-Based Decision Support System to Support the Information Analyst in Determining Requirements

Decision support system (DSS) researchers and designers continue to look for unstructured organizational tasks where there is a critical need for intelligent computer-based support. One such decision task is information requirements determination. Requirements determination is recognized as the most crucial phase of the systems development life cycle. Unfortunately, most methodologies and CASE tools focus only on how to specify the requirements once they are determined. There is very little computer support for the process of determining requirements. This paper discusses the conceptual design and development of a knowledge-based DSS to support information analysts in the critical decision task of determining requirements for the design of effective information systems. The expert modeling support system has the expertise to assist the analyst in studying the organization as a whole and in modeling the system under study in the context of the overall organization's goals and needs. The focus of the paper is on the problems associated with building the knowledge base component of the intelligent decision support system. A prototype implementation of the system is described.