REENGINEERING CHANNEL REORDERING PROCESSES TO IMPROVE TOTAL SUPPLY-CHAIN PERFORMANCE

This paper discusses the relationship between business process reengineering and channel performance for firms implementing electronic data interchange (EDI) linkages within the U.S. grocery industry. Both quantitative and qualitative data sources are combined to test the hypothesis that channel transformation involving adoption of EDI and redesign of replenishment processes enables performance improvements more than an order of magnitude greater than implementation of EDI alone. This new process, enabled by EDI, provides retailers with 50- 100% higher inventory turns for products on continuous replenishment processes (CRP) relative to retailer performance using traditional ordering processes. Firms adopting EDI without using CRP to reengineer the ordering processes have failed to realize any statistically significant improvements in either inventory levels or warehouse stockouts. This research provides evidence to support the claims of process reengineering that are common in the popular business press, but for which statistically significant empirical evidence is minimal. The findings of the research also demonstrate the potential improvements that firms can realize through extending the business process reengineering concept to include the firms' entire supply chain.     

Perspectives on Corporate Control: Implications for CEO Compensation

This study examines the influence on CEO paypractices of four corporate control perspectives:managerial control, class hegemony, external control,and efficient market. The results indicate the influence of both market and extra-market controls on thedetermination of CEO pay levels and criteria.Implications for the governance of firms and the studyof corporate control are drawn.     

The Escalator: A Conveyor of Hong Kong's Culture

People believe that escalators provide a moreattractive, convenient, and physically less-demandingpedestrian access from one place to another. However, itdoes not mean all of us have to like them. Escalators do not only affect our perception of speed, butthe most important concern is that this urban objectalso influences our social relationships and humancommunication. Under the transmission of this urban object, we are treated as components (a what),rather than human beings (a who). Thus, this articlediscusses how modernist thinking affects how we see thisobject and ourselves, and examines the relative worth of it, in relation to the social lossincurred in the present or future. This article alsodiscusses how its presence in many of the daily settingsof urban life affects the culture, meaning and quality of life.Requests for reprints should be addressed SIU Kin Wai Michael, School of Design, The Hong Kong Polytechnic University, Hunghom, Kowloon, Hong Kong.     

A Case Against Making the Control of Clients a Negotiable Contingency for Interdisciplinary Teams

Most discussions of interdisciplinary teamsassume that cross-functional teams are desirable.Critical analyses of the fundamental contradictionsinherent in bringing together professionals with diverse ideologies, interests, contingencies, andtechnologies are rare. Even less common are discussionsof the negative consequences of these contradictions forclients. Based on observations in an institution for youth-in-trouble, this paper argues thatthe control of clients is one key process underlyingconflicts and dilemmas in interdisciplinary teams; itbuilds a case against making the control of clients a negotiable contingency for teams. Given theuniversal nature of control mechanisms, those mostdirectly responsible for control have a superiorbargaining position because, in order to be effective,their control routines must be consistent. Althoughthese workers may yield to other treatment ideologiesregarding particular clients, the overall outcome is theenhancement of their interests. Moreover, the outcome of negotiations may generate confusionfor clients because of inconsistencies in theapplication of control mechanisms. Three strategies tominimize interprofessional negotiations regarding the control of clients are discussed: theformulation of clear boundaries between thoseresponsible for control and those who are not; theestablishment of policies to address conflicts betweencontrol and competing treatments; and, client determinationof differential levels of interprofessional coordinationand cooperation.     

THE PERILS OF EXCELLENCE: BARRIERS TO EFFECTIVE PROCESS IMPROVEMENT IN PRODUCT-DRIVEN FIRMS

Several authors have suggested that a focus on manufacturing capability and on continued process improvement may be a powerful source of competitive advantage, yet many firms appear to have encountered great difficulties in taking advantage of this insight. This paper reports on the results of five these conducted under the auspices of the MIT Leaders for Manufacturing program at the Microwave Technology Division of the Hewlett-Packard Company. We found considerable evidence that the marginal returns to process development within the division were probably considerably higher than the division's cost of capital, suggesting that process improvement probably was underfunded despite the fact that improving manufacturing capability had been identified as a key strategic priority. We found no evidence that this “underfunding” reflected either a failure to recognize the problem or an overly hierarchical or rigid organization. Rather it appeared to flow from the historical strengths of the division. A devotion to leading-edge technical solutions and to immediate customer service at almost any price had created barriers to the effective funding of process improvement that were deeply rooted in the organizational structures, information systems, and formal and informal incentive structures that had evolved to support the division's historical emphasis on excellence on product design. Our results highlight the problems that very successful product-driven companies may encounter in attempting to make continual process improvement central to their strategic mission.     

LINKING PROCESS CHOICE WITH PLANT-LEVEL DECISIONS ABOUT CAPITAL AND HUMAN RESOURCES

We examine how process choice links with design decisions about capital and human resources. Our analysis confirms empirically most expected differences between process- and product-focused plants for these decisions. What is unexpected is how top-performing plants resemble other plants within the same process choice category in most respects, while distinguishing themselves on a few selected process attributes. For example, better performing process-focused plants not only achieve higher machine flexibility levels and lower overhead costs as expected, but also have more intensive preventive maintenance programs. Similarly, product-focused plants that achieve certain hallmarks of process-focused plants also enjoy superior performance.     

Research Selectivity, Managerialism, and the Academic Labor Process: The Future of Nonmainstream Economics in U.K. Universities

This paper reports the results of empiricalresearch designed to explore the impact of researchselectivity on the work and employment of academiceconomists in U.K. universities.Research selectivityis seen as part of the general trend towardmanagerialism in higher education in both the U.K. andabroad. Managerialism based on performance indicatorsand hierarchical control has been contrasted withcollegiate control-based or informal peer review. However,analysis of the academic labor process has idealizedcollegiate relations at the expense of professionalhierarchies and intellectual authority relations. We argue that in the U.K., there has evolved amainstream economics which is located within awell-defined neoclassical core. We find that theexistence of lists of core mainstream journals which arebelieved to count most in the periodic ranking exerciseposes a serious threat to academic freedom and diversitywithin the profession, institutionalizing the controlwhich representatives of the mainstream exercise over both the academic labor process and jobmarket. In this way, managerialism combines with peerreview to outflank resistance to new forms ofcontrolling academic labor at the same time asreinforcing disciplinary boundaries through centralizedsystems of bureaucratic standardization andcontrol.     

PROCESS IMPROVEMENT: AN EXPLORATORY DATA ANALYSIS APPROACH WITHIN AN INTERVAL-BASED OPTIMIZATION FRAMEWORK

This article revisits an old problem; “systematically explore the information contained in a set of operating data records and find from it how to improve operational performance by taking the appropriate decisions in the space of operating conditions,” thus leading to continuous process improvement. A series of industrial case studies within the framework of the internships in the Leaders for Manufacturing (LFM) program at Massachusetts Institute of Technology led us to a reexamination of the traditional formulations for the above problem. The resulting methodology is characterized by the following features: (1) problem statement and solutions are expressed in terms of hyperrectangles in the decision space, replacing conventional pointwise results; (2) data-driven, nonparametric learning methodologies were advanced to produce the requisite mapping between performance and decisions; (3) operating performance is in essence multifaceted, leading to a multiobjective problem, which is treated as such. The proposed methodology has been applied to a number of industrial examples and in this paper we provide a brief overview only of those that can be discussed in the open literature.     

A THREE-PHASE APPROACH TO INSTILLING A CONTINUOUS LEARNING CULTURE IN MANUFACTURING EDUCATION AND TRAINING

We describe a “learn-by-doing” approach that involves the following three phases designed in part to integrate management and engineering curricula and instill a continuous learning philosophy: (1) involve cross-functional teams as “process and business owners” in a replica of a real-life manufacturing/design problem (Do), (2) require teams to not only learn by doing but to then apply or implement what they have learned in phase 1 (Apply), and (3) share best practices and knowledge gained with subsequent participants (Document). These last two phases are essential and potentially the most valuable but are often ignored in the learning process. They can be accomplished either manually or through the use of an electronic bookshelf (e.g., company or school intranet), which is a database system used to collect and store templates of best practices, collective wisdom, and related information associated with learning and operational activities. We describe two of several educational packages we have developed and discuss their impact on our teaching, our students, and practitioners.     

THE USE OF INDUSTRIAL SOFTWARE TO CREATE EXPERIENTIAL LEARNING ACTIVITIES IN OPERATIONS MANAGEMENT COURSES

Computer-based manufacturing planning and control (MPC) systems are widely used in industry to gain competitive advantage through integration and coordination of managerial activities. In collegiate business schools, important operations management activities are taught and studied, often by sequential examination of discrete topics such as aggregate production planning, master production scheduling, capacity planning, material planning, and production activity control. This paper explores the potential use of industrial MPC software in the classroom to create experiential learning activities that address the dynamic and integrative nature of operations management. Experiences with this pedagogical approach over the past decade are reported.