On Certain Indices for Ordinal Data with Unequally Weighted Classes

In this paper, some new indices for ordinal data are introduced. These indices have been developed so as to measure the degree of concentration on the “small” or the “large” values of a variable whose level of measurement is ordinal. Their advantage in relation to other approaches is that they ascribe unequal weights to each class of values. Although, they constitute a useful tool in various fields of applications, the focus here is on their use in sample surveys and specifically in situations where one is interested in taking into account the “distance” of the responses from the “neutral” category in a given question. The properties of these indices are examined and methods for constructing confidence intervals for their actual values are discussed. The performance of these methods is evaluated through an extensive simulation study.     

The generation of doctorates and their feedback into higher education

The dynamic effects of alternative manpower policies and programs can be “pretested” in a computer based simulation. It is generally recognized that the production of Doctorates depends to a large degree on the Doctorate-holding faculty. Because the doctorate holders are in great demand by the other sectors of the economy, a circular or a “feedback” situation exists. The problem is further complicated by the availability of developed student talent and by various socioeconomic conditions existing at different periods of time within two or three decades prior to the time a study is made.

This paper attempts to develop a conceptual and a mathematical model to study the production of Doctorates, Masters' and Baccalaureate degrees and their feedback into higher education. The model consisting of over 200 non-linear difference equations is programmed for computer simulation and validation against historical data. Currently simulation is used to describe what has happened in the past. Once this phase is accomplished, the model can be used to prescribe what will happen in the future with a fair level of confidence.     

Some statistical and DEA evaluations of relative efficiencies of public and private institutions of higher learning

This paper uses the Charnes, Cooper and Rhodes (CCR) ratio form of Data Envelopment Analysis (DEA) (1) to examine how DEA can be utilized in analyzing different aspects of production behavior of institutions of higher learning (IHLs) as an alternative to more traditional approaches such as econometric-regression models, and (2) to compare “specifically” relative efficiencies of public and private doctoral-granting universities in the U.S. and to analyze technical and scale efficiencies of those universities. The separation of doctoral-granting universities into universities with and without medical colleges represents a departure from preceding studies. This division proved very important in uncovering substantial differences in behavior between the two groups even when using the “statistical averaging” approaches that were customary in previous studies. For both groups, public universities proved more efficient than private universities when managerial and program inefficiencies are present in the data. When managerial inefficiencies are disentangled from the data and medical schools are not present, private universities have more efficient programs. However, their managers are less efficient users of program opportunities than are managers in public universities. Another portion of the current study dealt with returns-to-scale possibilities. These differed markedly (even on average) between IHLs with and without medical schools. Moreover, analyses by DEA showed marked ranges of variation for returns-to-scale possibilities for individual IHLs within each group. These possibilities have generally been concealed by the statistical averaging utilized in previous econometric studies. Further, their identification is beyond the ability of the usual types of one-at-a-time ratio and trend analyses.     

Household production, full consumption and the costs of children

Recent work criticises both the logic and relevance of the theoretical basis of the approach to estimating the costs of raising children adopted in much of the economics literature. This tends to be restricted purely to models in which the household members consume market goods with given household income. The “costs of children” are perceived essentially as market consumption costs. This ignores the fact that an important, possibly preponderant element of child costs takes the form of parental time, which must be diverted from alternative uses such as market work, other household production activities, and leisure, to care for children. The studies also ignore the question of the differential incidence of child costs on adult members of the household. In this paper, we first of all argue that a satisfactory theoretical approach to modelling child costs must simultaneously incorporate an “individualistic” formulation of the household and a formal treatment of household production. We then provide such a model. Using data from a time use survey we estimate specialised versions of the model for families with two children and use the results to derive the intra-family distribution of resources and implied child-rearing costs.     

Expert systems in production management: An assessment

Over the last several years expert systems (ES) have gained almost sensational interest. Within business administration, production management might be one of the most fruitful application areas for ES. There already exist a number of interesting pilot systems, and reports of research projects are beginning to appear in the literature.The main goal of this study is to identify systematically those areas in production management where an ES approach might be most promising. This is important to both researchers and practitioners because it helps pinpoint where research and development resources would be best allocated.In this article the authors provide a taxonomy for production management activities. They then combine this taxonomy with a well-known list of eight “expert tasks” to provide what they call an “applications map” to guide the discussion.After discussing existing research efforts and potential production management applications of expert systems, the authors employ a Likert scoring procedure to quantify their subjective ratings as to problem importance, potential for improved solution, and ease of development, for expert systems development efforts in a given production management decision situation.One conclusion here is that the applicability of expert systems to production management appears to be broadly based. This is particularly true for what the authors have labeled as “technological” activities. An interesting finding is the apparent lack of applicability of expert systems to inventory management. The authors found no existing system or research proposals applying expert systems to inventory management. Finally, systems that combine technological with logistical knowledge seem to be a fertile (but difficult) application area for ES.     

An extension of the monocentric urban spatial equilibrium model to a multicenter setting: The case of the two-center city

Firms in a monocentric city conforming in substance to the “new urban economics” produce an export commodity under agglomeration economies and employ homogeneous labor and capital. Workers reside about the CBD in decreasing densities with distance. A developer establishes a second export production center within the city's residential area. Conditions for economic viability and growth of the subcenter are examined, and its impacts on short-run and long-run city location patterns are discussed. A limiting condition on subcenter employment size is provided.     

Information theoretic approach to migration analysis

Information theory is employed to look at certain aspects of migration. It is suggested that the dividedness of a population into “movers” and “stayers” is better assessed by migration entropy. The notion of “migration inequality” is introduced and the principle of minimum entropy suggested as a criterion for fitting migrations models. Canadian census data are utilized for illustration purposes.     

Methods of cell formation in group technology: A framework for evaluation

Group technology is a manufacturing philosophy that attempts to provide some of the operational advantages of a line layout while maintaining some of the strategic advantages of the job shop layout. In designing a productive process that will adopt this manufacturing strategy, one of the primary problems encountered is the formation of component families and production cells. The production cell is a group of machines or processes of functionally dissimilar types that are placed together and dedicated to the manufacture of a specific range of component families.Several researchers in operations management have proposed methods of forming production cells and component families. These methods differ in terms of information requirements and also in terms of the final cell design. Furthermore, the objectives for each method are quite different and it thus seems that the focus has been on the method rather than its appropriateness in a particular situation. This article reviews some of the most publicized methods of group formation and analyzes the type of cells that could be formed using these methods. Subsequently, an evaluative framework is presented where the relative advantages of each type of production cell are discussed in terms of several strategic and operational factors. This framework is of particular use as it highlights the fact that in implementing a cellular manufacturing system, most organizations will face a trade-off of strategic and operational “costs.” Finally, the appropriateness of the cell types with respect to the degree of customer interaction is also discussed.     

“100% EDI-connected suppliers” projects: An empirical investigation of success factors

Electronic Data Interchange (EDI) is becoming increasingly important, and new organizational forms based on EDI suppliers’ capabilities are emerging. Therefore, taking advantage of recent technological changes, especially the development of Web-based EDI systems, many big industrial buyers are seeking to get all their suppliers EDI-connected. Based on previous research on EDI adoption, we conducted a survey to study the opportunities of success of such a “100% EDI-connected suppliers” policy using data from the vehicle industry. Findings from our survey helped us to understand suppliers’ responses to such a policy and to provide recommendations to industrial buyers who are seeking to succeed in a “100% EDI-connected suppliers” project. This includes employing tailored communication strategies and selecting appropriate incentives that take into account different levels of suppliers’ EDI-capabilities and suppliers’ dependence.     

Load-limited order release in job shop scheduling systems

This report examines the practice of using work load limits to control the release of orders to a job shop. Load limits function in the following general way. Whenever the inventory of work at a work center exceeds some critical value (its “load limit”), further release of orders which are routed to that work center are blocked from entering the shop. After the inventory is “worked off,” release of work to the shop gateways is again permitted. Load-limited order release is intuitively appealing because it appears to be a method for reducing system inventory and flow times. The practice of load limiting order release is becoming popularized by some of the recent production planning software products now on the market. A notable example is OPT. In this report, analytical results for an M/M/1 queueing model, along with existing simulation studies of multi-machine job shops are interpreted to form a theory about the effects of using load limits.The major finding here is the proposition that system flow time, inventory, and order tardiness all deteriorate to the extent that load limits introduce idle time into the schedule. Based on the arguments presented here, a very cautious approach toward the use of input control schemes for anywhere but gateway work centers would be advised. The conclusions drawn here are to a great extent arrived at by interpreting the research results of others, so there is a clear need for further research which tests these assertions in a more direct and controlled way.     

A new approach to the evaluation of process innovations

A technological change should be evaluated as early as possible in its development in order to minimize the chance of investing in an innovation that does not subsequently prove to be economically feasible. In this paper a method is presented for conducting an evaluation while the innovation is still in a conceptual stage of development. To do this, the production process is analyzed in detail and each individual element of the process that might be altered by the innovation is noted. All other elements of the process are ignored. Baseline data on the current performance of the process are collected. Performance of the innovation is estimated as a multiple or fraction of the baseline data for the altered elements. A value-weighted productivity index is used to compare the innovation with the current process.Sensitivity analysis can be performed on the productivity index to find those components of the current production process that are most responsive to change. Used in this way, this method of analysis can become a “driver” for R & D by exposing the parts of the current process that have the greatest potential for contribution to improvement of the productivity index.This method is illustrated in some detail for the case of one conceptual process improvement, laser-assisted machining — for cutting hard-to-machine metals.     

The cultural significance of accounting in Japan

We have had a spate of works on “Japanese Management” in the world, but very few on “Japanese Accounting”. In this article it is made clear that the functioning of accounting is contingent on the culture in which the accounting systems are incorporated, and that in order to discuss this intermingling of accounting and culture a perspective elaborated in Scandinavia can be relevant despite the uniqueness of Japanese culture. For only non-rationalistic or “naturalistic” perspectives can provide a basis for understanding the cultural dynamics of Japanese organizations and Japanese society. Thus the roles of accounting in Japan go far beyond what has been discussed in accounting textbooks.     

Production management, output volatility, and good luck

This paper models the scale of the technology shocks as a decision variable whose value is determined by the production manager. It is shown that smaller shocks enhance profit in several ways and thus the firm has an incentive to adopt more reliable production technologies. The adoption of these technologies may account for the “good luck” hypothesis in which the stabilization of Gross Domestic Product (GDP) since 1984 is attributed to smaller shocks. It differs from this hypothesis in two respects. First, the reduced volatility should be permanent. Second, the stabilization does not require smaller intrinsic shocks to the economy.     

Service Guarantee Strength: The key to service quality

While most authors describe a service guarantee as a “zero-one variable” indicating the presence or absence of an explicit written service guarantee, this paper develops a construct called “Service Guarantee Strength” (SGS) that is a continuous variable. This construct measures the degree to which a firm sets clear service quality standards for itself on dimensions that customers care about, and has an formal policy for quickly giving meaningful compensation to customers when these standards are not met.The paper builds upon established micro-level behavioral theory to develop the “Service Guarantee Strength Framework”. This framework posits that high Service Guarantee Strength leads to improved service quality, customer satisfaction, and loyalty through three intervening variables—marketing communications impact, employee motivation and vision, and learning through service failure.An empirical investigation was conducted to test the SGS Framework using both employee and customer data from three pairs of firms, with each pair in a different industry. None of these firms had an explicit service guarantee. Unlike many behavioral research studies, this study measured both employee and customer perceptual data and compared the two. The research finds that Service Guarantee Strength is positively related to customer perceptions of service quality, customer satisfaction, and loyalty.     

A theoretical and empirical analysis of the length of residency discount in the rental housing market

We present an analysis of occupancy discounts and suggest a decomposition of the discount into two components, a “sit” discount and a length of residency discount. Data from the national longitudinal survey of the Annual Housing Survey in which 75,000 housing units from around the United States were followed from 1974 to 1977 are used to obtain consistent and efficient estimates of those discounts. The econometric models account for censoring in the data by endogenously treating the tenant's staying decision. The estimation indicates that neither discount is significant. This result is contrary to the commonly accepted result in the urban literature that landlords offer discounts to their current tenants when contracts are renegotiated.     

Occupational gender segregation Trends and explanations

This article examines recent research on occupational segregation by gender. It reviews and evaluates statistical approaches to measuring the extent to which women are disproportionately represented in “women’s jobs” and men in “men’s jobs.” By combining the findings of a number of studies, it traces the changes in the extent in occupational segregation from the end of the nineteenth century until 1995, and the forms and extent of gender segregation in occupations cross-nationally. In addition to the trends, this article considers the consequences of segregation to women. Finally, current explanations for occupational segregation are analyzed and assessed by considering the empirical data on occupational segregation.     

The challenge of computer-integrated manufacturing

Recent years have seen major changes in the pattern of industrial production. Three forces have been particularly significant in driving industry along the road to advanced automated production; growing international competition, the example of Japan and the availability of new technology. Their combined effect is a trend towards advanced and integrated manufacturing systems.These changes require what are often radical adjustments in the philosophy of production management, away from traditional concerns with discrete operations and towards a total systems management approach.This paper examines some of the features of the challenge posed to production management by the technological changes embodied in the “factory of the future”.     

Modelling leadership—Implicit leadership theories in Sweden

This paper investigates Swedish data on implicit leadership theories in comparison with data from 61 other nationalities, testing the identification of a Swedish leadership style in light of globalization and possible converging value-formation processes. Global questionnaire data from 17,310 (900 Swedish) middle-managers constitute the basis for our analyses, using both a within-country perspective and a between-country perspective. While acknowledging the presence of almost universally endorsed leadership attributes, such as being inspirational and visionary, “typical” Swedish leadership attributes are possible to identify. Thus we challenge the simplified version of global convergence regarding leadership ideals and management ideology. On a basis of this study, we conclude that the notion of a Swedish leadership style is still meaningful and valid as a device for a better understanding of leadership efforts and cross-cultural interaction.     

Production scheduling with capacity-constrained transportation activities

This article presents a model for scheduling activities that are required to manufacture a product batch in a multistage process. The activities include setups, operations, and load movements between operations. In this model, setups may or may not require a unit from the preceding operation; each operation must be performed continuously on the batch once it has started, and capacity constraints apply to transportation activities. Within this context, two productivity-related objectives are sought. The primary objective is to minimize the total production time for the batch; the secondary is to minimize the number of load movements.Considering the capacity constraints, a maximum number of units per load is specified for each “vehicle” and one vehicle is dedicated to each transportation activity. The simplicity of the vehicle restriction facilitates the examination of scheduling interactions among activities, and the results of the research into this model may serve as a foundation for treating more general representations of capacity constraints.The model is used to investigate the scheduling implications of capacity-constrained load movements. It brings into focus interactions between these movements and the other activities in the process. After each operation, units must be grouped and moved in the fewest loads that permit the succeeding operation to begin as soon as possible, while observing setup and continuity requirements for this operation. Further, the departure times of loads depend on the availability of units and the vehicle. The formation of loads that must conform with the vehicle's capacity limit affects the times at which the loads are ready for movement, while the scheduling of previous movements from the operation affects the times at which the vehicle is available.A procedure is developed for scheduling activities that have this complex set of interactions. Computational requirements on test problems indicate that practical-sized applications can be handled with this procedure. These applications would be designed to assist in making production planning decisions by experimenting with factors such as vehicle capacity limits and sequencing of operations to determine their effect on production time requirements and numbers of load movements.The article develops a branch-and-bound routine to solve subproblems of scheduling transportation activities. The efficiency of this routine that results from exploiting the specific structure of the subproblems is critical for the success of the overall procedure. While the subproblems can be solved as zero-one mixed-integer programs, this approach is too computationally burdensome for all but the smallest of problems.