Planning and control in the U.S. Federal Government: A critical analysis of PPB,MBO and ZBB

PPB, MBO and ZBB have each been implemented in the U.S. Federal government, ostensibly as means for facilitating planning and control in agencies and programmes. The purpose of this paper is to evaluate the use of these techniques as management tools, political strategies and ritualistic symbols using concepts discussed in the organizational theory, planning and control, and policy science literatures. Two basic conclusions emerge from the evaluation. First, PPB, MBO and ZBB may inappropriately encourage the use of an analytical, computational decision strategy, and a cost/benefit method of performance assessment at a level within the organization and in environmental settings which call for an inspirational decision strategy and social test performance assessment. As a result, environmental variety may not be matched by an organizational response which is equally variable. Secondly, PPB, MBO and ZBB may have been used more as political strategies and ritualistic symbols for controlling and directing controversy by both the executive and legislative branches of the U.S. Federal government and less as management tools for improving decision making within the U.S. Federal bureaucracy. These management tools give the appearance of rationality in the formulation of public policy which is consistent with man's need for confidence building and conflict avoidance in running the affairs of state.     

Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization (MOO) for build-to-order supply chain management (BTO-SCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting MOO techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted. Future research directions to better exploit the decision support capabilities of MOO are proposed. These include: reformulation of the extant optimization models with a MOO perspective, development of decision supports for interfaces not involving manufacturers, development of scenarios around service-based objectives, development of efficient solution tools, considering the interests of each supply chain party as a separate objective to account for fair treatment of their requirements, and applying the existing methodologies on real-life data sets.     

The Simple Meaning of Complex Rates of Return

Real options analysis (ROA) has been identified in the literature as a quantitative means to evaluate the flexibility inherent in the decision-making process. From an engineering economics perspective, this paper highlights applications, real-world users, modeling approaches, ROA assumptions, and future research directions. Through identifying and systematizing the current literature, a concise summary of modeling concerns and a road map for future modeling efforts and applications is discussed. More specifically, this paper supports research efforts to combine decision analysis tools with financial option pricing techniques to develop a real option framework that will be accepted in industry to make decisions in today's fast-paced and highly competitive business environment.     

基于并行工程的建设项目管理模式研究

所谓并行工程是指集成、并行的设计产品及其相关的各种系统方法。在建设项目管理活动中。可借鉴并行工程的思想．建立起一种基于并行工程建设项目的管理模式。并行工程管理模式将原来分别进行的工作在时间和空间上交叉，重叠。并行利用信息的相互交流来达到资源共享。在此模式下．计划和控制都是依据获取的信息进行的．构想为金字塔模型。该模式的项目进度计划从系统整体出发着重强调并行项目之问的相互协调，其编制步骤可分为项目结构分解，项目活动时间估算及计划编制。采取的主要控制方法是基于计算机项目管理信息系统，包括决策支持、物资与设备管理、质量管理、成本管理，合同管理、财务管理，客户管理，风险管理、采购管理、人力资源管理等子系统。     

Human factors in agricultural management in East Africa

Many attempts to introduce change into farming systems have resulted in dependence, alienation, resource immobility and the suppression of indigenous adaptation techniques. Dr Mbithi evaluates the social and management environment of farm decision making and shows how this has lead to other serious social and psychological problems. His suggestions for a possible reorientation in rural development strategies include a re-examination of farm management and production models formerly dominated by agricultural economists, a revision of the concept of technology and a total rejection of the ‘trickle-down effect theory’.     

Environmental dynamism,capital structure and performance: a theoretical integration and an empirical test

An ongoing argument in financial management has been how to craft a capital structure which maximizes shareholder wealth. This question has gained prominence within the strategic management field because of the apparent link between capital structure and the ability of firms to compete. By integrating models from organizational economics with the strategic management literature, we are able to theorize that a firm’s capital structure is influenced by environmental dynamism, and that the match between environmental dynamism and capital structure is associated with superior economic performance. Our large‐scale empirical analyses provide supportive evidence for the proposition that competitive environments moderate the relationship between capital structure and economic performance. From a theoretical standpoint, these findings provide another link between capital structure and corporate strategy. More importantly, we are able to move the discussion beyond the limitations of financial risk and incorporate the strategy concept of decision making under uncertainty. For practical application, these findings offer informed advice for managers on how to craft a capital structure. Copyright © 2000 John Wiley & Sons, Ltd.     

Organisational culture and decision making: a case of consensus management

Abstract
This paper explores how a state-of-the-art concept, organization culture, shapes decision making and consensus generating strategies used in the successful management of product development activities in high technology companies. Engineering development groups interact with many individuals and groups on a wide variety of very comples engineering, manufacturing, marketing and business issues Much uncertainty exists around these issues because information that would allow for a decision to be made is often unknow or unknowable. Trade-offs are made continually resulting in a high degree of interdependence among development groups and others with whom they interact. Achieving a balance between controlling development activities on the on hand, and encouraging creativity and initiative on the other, is a complicated process.
this paper illustrates the role of organizational culture in product development using case material from a very successful US high case material from a very successful US high technology company. 'Consensus management', a major cultural theme at 'DW Enterprises', is a decision making style that involves everyone in the decision making process who might have relevant input. A cultural analysis reveals that the engineers developed specific techniques for generating consensus, and that these related as much to control over participation in product development as to decision making.     

Secondary level engineering professional development: content, pedagogy, and challenges

The design of this study was a multiple case study conducted to examine the knowledge, pedagogical principles, and challenges involved in providing engineering-oriented professional development for teachers at the secondary school level. A set of criteria was used to identify five representative projects for analysis in the US. A variety of tools and processes were used to gather data including on-site observations, interviews, focus groups and document reviews. Results of the study indicate that engineering professional development tends to be based on work focused on curriculum development and implementation. Given the distinct design orientation of engineering, it is not surprising that the focus of engineering-oriented professional development tends to concentrate on engaging activities, with a primary focus on process rather than content. A key outcome of this study was an observed lack of a clearly formulated and articulated conceptual foundation for secondary level engineering. Regarding pedagogy, the researchers identified a heavy emphasis on modeling and applied learning. At the same time, the researchers observed a lack of emphasis on reflection and analysis of the pedagogical processes and techniques used to shape teachers’ ability to teach engineering to their students. The findings of the study also include concerns raised by teachers as they engage in engineering professional development. These include concerns about technical knowledge, particularly with the use of specialized software applications and other tools, as well as with practical issues such as time, resources, and availability of appropriate curriculum.     

A Review of: “FLOOD PLAIN MANAGEMENT: IOWA'S EXPERIENCE” Edited by Merwin D. Dougal Iowa State University Press 1969 270pp. $6.95

In its development as academic subject matter, engineering economics started as a set of simple determinations of alternative costs for engineering projects, predominately in the civil and mechanical fields. It subsequently began using later-developed techniques of quantitative analysis such as operations research, microeconomics, managerial economics, and finance. To reinforce its position in the engineering curriculum for the ever more important environmental sciences, it is suggested that engineering economics courses seek to bring their analytic resources to bear on the many possible topics included in this set of disciplines.     

Risk management, project success, and technological uncertainty

In times of increased competition and globalization, project success becomes even more critical to business performance, and yet many projects still suffer delays, overruns, and even failure. Ironically, however, risk management tools and techniques, which have been developed to improve project success, are used too little, and many still wonder how helpful they are. In this paper we present the results of an empirical study devoted to this question. Based on data collected on over 100 projects performed in Israel in a variety of industries, we examine the extent of usage of some risk management practices, such as risk identification, probabilistic risk analysis, planning for uncertainty and trade-off analysis, the difference in application across different types of projects, and their impact on various project success dimensions. Our findings suggest that risk management practices are still not widely used. Only a limited number of projects in our study have used any kind of risk management practices and many have only used some, but not all the available tools. When used, risk management practices seem to be working, and appear to be related to project success. We also found that risk management practices were more applicable to higher risk projects. The impact of risk management is mainly on better meeting time and budget goals and less on product performance and specification. In this case, we also found some differences according levels of technological uncertainty. Our conclusion is that risk management is still at its infancy and that at this time, more awareness to the application, training, tool development, and research on risk management is needed.     

Antecedents and Consequences of Reflexivity in New Product Idea Screening*

Pre‐development activities, such as new product idea screening, are considered to play an important role in innovation success. At the screening stage, a management team evaluates new product and service ideas and makes a first go/no‐go decision under high levels of uncertainty and ambiguity. Paying more attention to the decision‐making process in the screening stage appears important because too rigorous a use of rigid evaluation criteria and inflexible methods have been shown to have an adverse effect on market performance of novel products. The present study proposes and tests a model of team‐level antecedents and consequences of reflexivity—the explicit evaluation and discussion of working methods, tools, and criteria within a team. Recently, researchers have proposed that cognitive style and leadership style are major antecedents of decision‐making performance. This study posits that reflexivity offers an explanation of how transformational leadership and cognitive style can eventually affect decision‐making performance in the context of new product idea screening. Results of a survey among 126 top managers from large international firms show that the positive effects of transformational leadership and procedural rationality on the effectiveness and efficiency of screening decision making are largely mediated by reflexivity at the team level. This suggests that screening teams can improve their decision making in the following ways: committee chairs are advised to stimulate openness, develop a stop‐and‐think attitude among screening committee members, and support argument‐based discussion in order to adapt available decision tools, models, and checklists whenever needed. The paper concludes with implications, limitations of the study, and suggestions for further research.     

THE CUTOFF BENEFIT-COST RATIO SHOULD EXCEED ONE

The engineering economics textbook rule of accepting all projects with a benefit-cost ratio in excess of one worth fails to consider the bias introduced from there being typically more poor projects than good projects. Bayesian statistics provides an analytical solution to the problem of combining prior information with an engineer's estimates. With all distributions normal, the posterior mean (to be used for decision making) becomes a weighted average of the prior mean, and the mean derived from the engineer's estimates, A simple formula provides the optimal cut-off benefit-cost ratio. This value typically exceeds the textbook's unity cut-off benefit-cost ratio.     

Drivers influencing farmer decisions for adopting organic or conventional coffee management practices

Colombia is one of the world’s most important producers of Arabica coffee (Coffea arabica), whose coffee-growing zone coincides with a biogeographic hotspot of biodiversity. Given that coffee agroecosystems are grown by both organic and conventional schemes of management in Santander, a region which produces coffees with specialist distinctive flavours, this study aims to better understand the factors that influence the adoption of these different schemes of management. A combination of ethnographic techniques and quantitative methods were used to examine the predominant drivers of adoption and revealed farmer perceptions associated with coffee farming, and the complexity of interacting factors, that surround their decision making. The results of qualitative analysis suggests that social identity of coffee growers, the existence of farming spaces (lived, perceived, rationalised), the influence of coffee institutions, attitudes about management practices, and social relations of production, all play an important role in the process of decision making. In quantitative terms, we identified 18 socioeconomic drivers, some with interacting effects that had significant influence on the decision to adopt either organic or conventional practices. In particular, at local scale, important factors were technology availability, the type of landowner, formal education of farmers, the role of institutions, membership of community organisations, farm size, coffee productivity and the number of coffee plots per farm. Likewise, economic drivers, such as crop profitability, determined how farmers are involved in trade and market networks at broad regional, national, and international spatial scales. By adopting a more integrated approach, combining qualitative and quantitative methodologies, we characterised the complexity of factors that influencing adoption of coffee management schemes and show that not only financial factors but also a variety of other social factors drive farmer decision making. Identifying the most influential behavioural drivers provides policy with opportunities to better support farmer livelihoods.     

A SURVEY OF ENGINEERING DESIGN LITERATURE: METHODOLOGY,EDUCATION, ECONOMICS,AND MANAGEMENT ASPECTS

This paper provides a comprehensive list of relevant books and articles pertaining to the subject area of “engineering design,” with specific focus on the methodology, education, economics, and management aspects of the design discipline. The purpose of this survey of engineering design literature is to provide a compendium of books and articles that may be instrumental in facilitating the process of sharing and disseminating design knowledge     

EXPLOITING UNCERTAINTY—INVESTMENT OPPORTUNITIES AS REAL OPTIONS: A NEW WAY OF THINKING IN ENGINEERING ECONOMICS

A new trend in corporate planning is to exploit uncertainty by taking investment opportunities as real options. This options approach is to complement the conventional net present value (NPV) criterion in evaluating risky investments. In this paper, we take a broad look at the real options approach to various engineering economic decision problems, laying out how it provides an immediate and important perspective on value creation in an uncertain world. Unlike financial options, real options analysisdeals with investments in real assets, which is one of the primary interest areas in engineering economics. For that reason, we believe that any advancement in the real options decision framework will benefit the field of engineering economics.     

Decision Analysis and Strategic Management of Research and Development: A comparison between applications in electronics and ethical pharmaceuticals

The process of strategic management of research and development is contrasted through the application of decision analysis in the evaluation of R&D projects—one in an electronics company, and one in a pharmaceutical company.
Issues considered include the different character of applied R&D in each industry resulting from, for example, the shorter product lifecycles that apply to the electronics industry compared to the much longer lifecycles in the pharmaceutical industry. The difference of time horizon between the two industries suggests that different decision criteria might be adopted in project evaluation. Decision-makers in both industries express a need for flexible decision and performance criteria in relation to strategy dialogue about alternative project-options.
Implementation problems encountered include: long term discounting, the nature of the preference function for long-term cash flow streams, issues in making assessments of uncertainty in relation to long-term future time horizons, and the management of research portfolios.     

管理会计体系建设问题研究

分析了管理会计在企业战略、业务、财务一体化决策中的重要工具作用和意义,指出了制约管理会计发展及企业实施管理会计过程中的经验和困难;提出了加强管理会计体系建设,必须积极发挥财政部的推动作用,明确管理会计体系发展的目标和方向,切实建立管理会计体系工作计划和步骤等相关政策建议。     

Advisors and decision-makers in product eliminations

This article reports on the product elimination decision within selected sectors of the British engineering industry. The study identified and examined the key organizational participants in product elimination activities. The marketing function and a top management committee generally assumed a significant portion of the product elimination decision making. The results of the study suggested that the people responsible for product elimination varies considerably among companies, depending on such factors as size, product diversity, operations technology, and market competition.     

“Engineering Economics Jeopardy!” Mobile App for University Students

This article presents the “Engineering Economics Jeopardy!” mobile app development process and college students’ satisfaction assessment of the developed app. The app includes a general tools E-book, calculator, reference tables, conceptual questions, and calculation problems in an engaging fashion. The E-book is a summary of the key concepts of engineering economics. The calculator provides functions to solve basic engineering economics problems with formulas. The tables allow the users to compute discrete compound interest factors. Through this Jeopardy! game, users can compete with two virtual opponents that have artificial intelligence to answer conceptual questions and calculation problems. Different sets of problems range from the simple questions on the time value of money to more complex concepts, such as sensitivity analysis, Monte Carlo simulation, and supply–demand equilibrium. This app is intended to give students more opportunity to learn and practice concepts of engineering economics whenever and wherever they want using their mobile devices. Accomplishments of this work include the following:

• “Engineering Economics Jeopardy!” mobile app has been developed and distributed.

• Five thousand people have downloaded the app so far.

• The effectiveness of the developed app has been researched with 116 college students who were enrolled in engineering economics courses across two semesters.

     

Institutional and Organizational Factors Affecting Effectiveness: Geoeconomic Comparison Between Shanghai and Beijing

This study aims at uncovering the geoeconomics of successful strategic management in subculturally diverse countries. The new theory of geoeconomics is defined as the study of geographic influences on economics and management. Using this theory to integrate the key success factor approach and resource-based view of the firm, the study examines geographical differences between two cities in the North and South of mainland China with respect to key factors leading to organizational effectiveness. It employs structural equation modeling to analyze survey data from 124 enterprises in the two most important cities of China, Beijing and Shanghai. Among the dozen factors integrated from different organizational domains, significant differences were found in the impact of government support (more important in the North) and company size (more important in the South). Other differences related to environmental constraints, ownership, leadership, and decision making corresponded to theoretical predictions but were not significant. As hypothesized, appropriate structure was equally important in both regions. Strategic orientation was not significant anywhere. To achieve high performance in China, practitioners must develop regionally adapted strategies, management techniques and performance control benchmarks, which fully consider and leverage the varying success factors in different subcultures. More generally, the results highlight the importance for researchers of strategy and organization to analyze regional differences that might be hidden at the aggregate data level.