The future of operations management: An outlook and analysis

Managing operations in both manufacturing and service organizations have evolved tremendously over the years with the change in market requirements. The market has become global, thereby compelling enterprise operations to keep up. The application of information technology/information systems (IT/IS) and outsourcing in managing operations have significantly altered the landscape of operations management (OM) strategies, techniques, and technologies. Consciousness towards environmental and safety also urges companies to examine their OM approach and manufacturing from various perspectives. Recently, energy cost and protection against terrorism have changed the portfolio of enterprise operations and therefore the approach to OM. Now, it is time to revisit the OM principles, curriculum, and training at the institution of higher learning and industries. Moreover, manufacturing has become more of a service activity, indicating significant service OM, including project management. The profile of service industries has also changed in view of the emergence of globalization, outsourcing, and IT, coupled with the rapid economic growth of emerging economies such as Brazil, Russia, India, and China (BRIC). In fact, services account for approximately 80% of the US gross domestic product (GDP); this is also a growing figure of the GDPs of other countries over the world. Again, service OM needs to be revisited in the context of the abovementioned paradigm shifts. In considering the significance of the above-mentioned changes in the market and society as a whole, an attempt is made to study the evolution of OM and subsequently to develop a framework for new OM strategies and tactics that will support the competitiveness of organizations within the next 10-20 years.     

Cultural vs. operational market orientation and objective vs. subjective performance: Perspective of production and operations

The relationship between market orientation and organizational performance has been the focus of many studies for the last few years. The conclusions reported are very diverse and even contradictory. This ambiguity is reinforced to some extent by the high degree of methodological heterogeneity in the definition and measure of market orientation and organizational performance and the empirical formalization of the relationship between both concepts. This study tackles this question by comparing different methodological approaches. Three key aspects are considered: (1) cultural and operational approaches for measuring market orientation; (2) objective and subjective measures of performance; and (3) the source of information in the organization, specifically the perspective of production and operations. The results obtained from a sample of Spanish industrial firms show a stronger positive relationship for operational market orientation and subjective performance. Moreover, the adoption of ‘operational recipes’ of market orientation by the production and operations function seems to improve organizational performance regardless of the existence of any cultural support for market orientation.     

B2B sales force productivity: applications of revenue management strategies to sales management

Firms should be able to apply the time-based philosophy of revenue management to their sales forces. To do so requires a revision in the way most sales divisions traditionally have viewed salesperson time. Hence, a different type of proposed measure, revenue per available salesperson hour, is proposed to better integrate the value of the salesperson's time as a factor in sales potential and revenue calculation. This article seeks to (1) foster a positive perception of revenue management as a viable sales approach, (2) establish a framework for such a strategy, and (3) set a useful road map for facilitating execution.     

Interdependencies between network and activity-analytical descriptions of production relationships in the implementation of large-scale projects – illustrated by textbook production

Interdependencies between network-based production planning in the case of large-scale projects and activity-analytical aspects of those processes are elaborated by reference to the production of a study letter for teaching purposes. Applying dynamic activity analysis, the networks can be evaluated in respect of their efficiency in consuming resources, and therefore, in turn, from performance and disposition perspectives.     

An assessment of the use of structural equation modeling in strategic management research

Structural equation modeling (SEM) is a powerful, yet complex, analytical technique. The use of SEM to examine strategic management phenomena has increased dramatically in recent years, suggesting that a critical evaluation of the technique's implementation is needed. We compared the use of SEM in 92 strategic management studies published in nine prominent journals from 1984 to 2002 to guidelines culled from methodological research. We found that the use and reporting of SEM often have been less than ideal, indicating that authors may be drawing erroneous conclusions about relationships among variables. Given these results, we offer suggestions for researchers on how to better deploy SEM within future inquiry. Copyright © 2004 John Wiley & Sons, Ltd.     

An iterative approach to item-level tactical production and inventory planning

In this paper, we propose an iterative approach to jointly solve the problems of tactical safety stock placement and tactical production planning. These problems have traditionally been solved in isolation, even though both problems operate in the same decision making space and the outputs of one naturally serve as the inputs to the other. For simple supply chain network structures, two stages and one or many products, we provide sufficient conditions to guarantee the iteration algorithm’s termination. Through examples, we show how the algorithm works and prove its applicability on a realistic industrial-scale problem.     

A practical approach to sensitivity analysis in linear programming under degeneracy for management decision making

Linear programming (LP) is a widely used tool in management decision making. Theoretically, sensitivity analysis of LP problems provides useful information for the decision maker. In practice, however, most LP software provides misleading sensitivity information if the optimal solution is degenerate. The paper shows how sensitivity analysis of LP problems can be done correctly when the optimal solution is degenerate. A production planning example is presented to illustrate the incorrect sensitivity analysis results automatically provided by most LP solvers. The general characteristics of the misleading results and the possible effects of this incorrect information on management decisions are also discussed.     

Identifying risk issues and research advancements in supply chain risk management

The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some research gaps. Even though there is a pressing need and awareness of SCRM from industrial aspect, quantitative models in the field are relatively lacking and information flow risk has received less attention. It is also interesting to observe the evolutions and advancements of SCRM discipline. One finding is that the intellectual structure of the field made statistically significant increase during 2000-2005 and evolved from passively reacting to vague general issues of disruptions towards more proactively managing supply chain risk from system perspectives.     

Innovation,R&D productivity,and global market share in the pharmaceutical industry

In this paper, we estimate two empirical models using a pooled, cross-section sample of international pharmaceutical firms for the period 1987 to 1989. The first model tests the relationship between R&D productivity and a vector of firm-specific characteristics. The second model tests the determinants of global market share. The empirical analysis reveals three findings. First, we find evidence that there are diminishing returns in the pharmaceutical R&D process. Second, we find that firm size has a positive effect on average R&D productivity and a positive impact on the marginal R&D productivity for plausible R&D staff sizes. And third, we find evidence that R&D productivity and the number of sales employees have a positive effect on the firm's global market share.The views presented in this paper reflect those of the authors and do not necessarily reflect the views of the U.S. International Trade Commission or any of its individual commissioners. We thank William Comanor, Daniel Gropper, Daniel Hamermesh, Susan Pozo, Paul Thistle, and Mark Wheeler for their comments and suggestions on an earlier draft of this paper. We assume all responsibility for any errors contained herein.     

An empirical analysis of supply chain risk management in the German automotive industry

The purpose of this paper is the empirical analysis of supply chain risk management practices. The analysis is based on a survey with 67 manufacturing plants conducted in the German automotive industry. After investigating the vulnerability of supply chains in general and examining key drivers of supply chain risks, the paper identifies supply chain risks by analyzing their likelihood to occur and their potential impact on the supply chain. The results are visualized in the probability-impact-matrix distinguishing between internal and external supply chain risks. Furthermore, instruments for dealing with supply chain risks are investigated. Therefore, the impact of supply chain risk management on performance is tested. In order to distinguish between companies with a high degree of supply chain risk management and those with no or only limited implementation the plants are grouped by means of a cluster analysis based on factors reflecting the instruments of supply chain risk management. In particular, groups are created representing two different approaches to deal with supply chain risks, i.e. reactive and preventive supply chain risk management. The clusters are investigated concerning differences in terms of performance criteria. The analyses reveal that companies with a high implementation degree show a better supply chain performance. Furthermore, the results show that the group using reactive supply chain risk management has higher average value in terms of disruptions resilience or the reduction of the bullwhip effect, whereas the group pursuing preventive supply chain risk management has better values concerning flexibility or safety stocks.     

Business and management in China: A review of empirical research in leading international journals

Asia Pacific Journal of Management - China’s growing economic importance has led to a significant increase in the volume of empirical research about business and management in this country...     

Coordination of a production network with a single buyer and multiple vendors

This article considers a single buyer sourcing a single product from a network of homogeneous suppliers. We assume a close and cooperative relationship between buyer and vendors and suggest two coordination mechanisms, which differently affect where inventory is held in the system. Accordingly, we derive analytical and heuristic solutions for both alternatives and study the relative advantage of the models in a sensitivity analysis. Finally, propositions for future research are presented.     

高校科研管理系统的设计与实现

分析了C/S和B/S 2种模式混合使用的优越性,讨论了基于这2种混合模式如何进行高校科研管理系统的功能设计、系统体系结构设计、系统开发工具环境选择、功能模块划分,介绍了系统实施过程中的主要技术,并叙述了校级课题申报、审批、合同、结题等管理功能。     

Past,present and future trends of purchasing and supply management: An extensive literature review

This research aims to evaluate the state of the art of Purchasing and Supply Management (PSM). This is carried out through a wide, in-depth, and structured examination of published works. More than one thousand papers (i.e., 1055) published in 20 peer-reviewed journals were collected and analyzed to provide a snapshot of PSM research, including the extent of the overall production, the background theory used, the unit of analysis, the research method, and the main topics investigated. Other literature reviews related to PSM have been conducted in the past but have focused primarily on specific topics and/or considering a narrower set of publications. Furthermore, the authors define a framework useful for analyzing the PSM literature and outline the state of the art of PSM research from a content-specific perspective, including an evaluation of the maturity of PSM research as a discipline.     

Variance amplification and the golden ratio in production and inventory control

A discrete linear control theory model of a generic model of a replenishment rule is presented. The replenishment rule, which we term a “Deziel Eilon—automatic pipeline, inventory and order-based production control system”, is guaranteed to be stable. From a z-transform model of the policy, an analytical expression for bullwhip is derived that is directly equivalent to the common statistical measure often used in simulation, statistical and empirical studies to quantify the bullwhip effect. This analytical expression clearly shows that we can reduce bullwhip by taking a fraction of the error between the target and actual inventory and pipeline (or work in progress (WIP) or “orders placed but not yet received”) positions. This is in contrast to the common situation where ordering policies account for all of the error every time an order is placed. Furthermore, increasing the average age of the forecast reduces bullwhip, as does reducing the production/distribution lead-time. We then derive an analytical expression for inventory variance using the same procedure to identify the closed form bullwhip expression.We assume that a suitable objective function is linearly related to the bullwhip and inventory variance amplification ratios and then optimise the PIC system for different weightings of order rate and inventory level variance. We highlight two forms of the objective function, one where “the golden ratio” can be used to determine the optimal gain in the inventory and WIP feedback loop and another that allows the complete range of possible solutions to be visualised. It is interesting that the golden ratio, which commonly describes the optimum behaviour in the natural world, also describes the optimal feedback gain in a production and inventory control system.     

Circulation of autonomous agents in production and service networks

The inherent complexity characterizing production and/or service networks strongly favors decentralized and self-organizing mechanisms to regulate the flows of matter and information in circulation. This basic observation motivates us to study the flow dynamics in queueing networks roamed by autonomous agents which, at a given time and at a given vertex location, select their routing according to (individual) historical data (such as waiting times) collected during their past progression in the network. For several simple network configurations and despite the intrinsically non-Markovian character of the dynamics, we are able to discuss analytically the emerging collective dynamics that such a circulation of autonomous agents generates. Feedback loops in the network topology coupled with the presence of delays in the routing selection mechanisms produce a wealth of dynamical phenomena like self-sustained generically stable oscillations, spatio-temporal patterns, stabilization by noise phenomena and oscillator synchronization that are explicitly discussed in this paper.     

中小制造企业生产管理系统研究

为提高中国中小制造企业的信息化水平,促进企业生产竞争力和市场应变能力,通过详细分析中国中小制造企业的生产管理特点,提出了一种简单适用的计算机集成管理系统模型。     

Citation footprints on the sands of time: An analysis of idea migrations in strategic management

We elucidate the intellectual progression of the strategic management field by examining knowledge flows to and from the Strategic Management Journal (SMJ) during the period 1980–2009. We provide a detailed mapping of the evolution of the intellectual structure of the field and identify its input‐output dependency relationships with other fields. Analysis of citation data using three analytic techniques: log‐multiplicative model, pathfinder analysis, and entropy analysis allow us to discern strategic management's influence on and engagement with other disciplines. The results show that, within the intellectual universe of strategic management, SMJ has played a central role, both as a source and storer of knowledge. We notice that, over time, there has been a decline in practitioner orientation, greater communication with finance and sociology, and increasing linkages with international business and entrepreneurship. Copyright © 2015 John Wiley & Sons, Ltd.     

Selling and sales management: An introduction to the special section and recommendations on advancing the sales research agenda

Effectively managing the sales function is a prerequisite for success in business markets. Thus, practitioners are increasingly interested in improving the performance of their sales function. However, there is evidence pinpointing that academic research in the area may be experiencing a decline in its status among other subject areas in the marketing discipline. Fortunately, advances in the field of selling and sales management as reflected in the organization of specialized conferences/meetings and the development of special journal issues hold the promise of enhancing the status of sales within marketing academia. Following this stream of activities, this IMM special section on “Selling & Sales Management” aims at stimulating the level of discourse regarding how research in our field can be advanced. The present article introduces the special section; next, it summarizes the articles comprising the special section; and, finally, it concludes with some thoughts on fruitful research opportunities in the sales area.     

The theory and practice of workload control: A research agenda and implementation strategy

The Workload Control (WLC) concept is one of few Production Planning and Control (PPC) solutions appropriate for Make-To-Order (MTO) companies yet its successful implementation is an enduring challenge. Most implementations reported are in large organisations yet it has been argued that WLC is particularly suitable for Small and Medium sized Enterprises (SMEs) with limited financial resources. Moreover, previous studies do not adequately describe the process through which implementation success was achieved. In this paper, data collected through semi-structured face-to-face interviews with key personnel from 41 companies is presented in order to build up a body of evidence on the characteristics of MTO SMEs that affect WLC implementation. The data paints a complex picture of MTO production and suggests that research is likely to be required to move theory closer to practice and organisational change to move practice closer to theory. The former is recommended where processes perform well or appear difficult to change; the latter is recommended where fundamental WLC principles are involved. Two outputs emerge from the study: (1) a research agenda for refining the WLC concept to improve alignment between theory and practice, covering the customer enquiry, order entry, design and engineering and order release stages; and (2) an implementation strategy, including elements of organisational change and covering pre-implementation, implementation and post-implementation stages. The characteristics of MTO SMEs identified should be used in future research to develop more realistic simulations for testing conceptual refinements while field research should apply and extend the implementation strategy presented in order to develop a more detailed roadmap for successful WLC implementation in practice.