POM 2001 Orlando Program Schedule

About this Schedule.............................................................................................................5Summary Program Outline..................................................................................................6

Friday, Mar. 30...................................................................................................................6Saturday, Mar. 31................................................................................................................6Sunday, April 1...................................................................................................................6Monday, April 2.................................................................................................................6

Day’s Overview: Friday, March 30.......................................................................................7Registration Begins 12:00 noon to 6:00PM.................................................................7Workshops 1:00 PM to 5:00 PM................................................................................7SCOR: A New Tool to Improve Supply Chain Efficiency and Achieve Best Practice.. .7Digital Exchanges and Supply Chains.............................................................................7

Day’s Overview: Saturday, Mar. 31....................................................................................9Day’s Overview: Sunday, April 1.....................................................................................11Day’s Overview: Monday, April 2....................................................................................13SESSION CODES.............................................................................................................15POM 2001 ORLANDO SCHEDULE BY TRACKS........................................................16Track: Academic Administration......................................................................................16

MO-1-2 Session Title: New Approaches to Structural Changes in Academia & Supply Chains.................................................................................................................16

Track: Cases in Operations Management..........................................................................17SA-2-1 Session Title: Cases from Around the Globe...............................................17MO-2-2 Session Title: Teaching Operations Management with Cases..................18

Track: Disney World.........................................................................................................18SU-3-2 Session Title: Forecasting in the Service Sector........................................18SU-3-3 Session Title: Service Standards and Measurements for Quality.................18MO-3-1 Session Title: Great Leaders Strategy and Inspiration – The Real Work of Leadership 19MO-3-2 Session Title: Supply-chain Management at Walt Disney World..............19

Track: Electronic Commerce Applications.......................................................................19SA-4-2 Session Title: E-Business And Supply Chain Management.........................19SA-4-3 Session Title: Operations of E-Selling........................................................20MO-4-2 Session Title: Fundamentals Of E-Business And E-Knowledge Networks

22MO-4-3 Session Title: The Virtual Factory And E-Business Aspects Of Manufacturing................................................................................................................23

Track: Enterprise Resource Planning................................................................................24SA-5-1 Session Title: ERP & Supply Chain Integration............................................24

Design and Delivery of Information System using ERP Database Management.............25SA-5-2 Session Title: Case Studies in ERP...............................................................25SA-5-3 Session Title: ERP in Academic Research and Education............................27

ERP and the Creation of Learning Communities in Business Education, George............27SU-5-1 Session Title: Organizational Issues in ERP.................................................28

Enterprise Resource Planning Systems Enabled Business Process Reengineering,..........29Rev 3-7-01

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Palaniswamy Rajagopal, Indiana University at South Bend, South Bend, Indiana 46626, rajagopalisom@hotmail.com.............................................................................................29

SU-5-2-1 Session Title: ERP Modeling & Capacity - I.............................................29SU-5-2-2 Session Title: ERP Modeling & Capacity - II............................................31SU-5-3 Session Title: Managing Information in ERP................................................31

Track: Environmental Issues.............................................................................................34SA-6-1 Session Title: Supply Chain Dynamics and Environmental Management....34SA-6-2 Session Title: Environmental Issues in Operations I....................................35SU-6-3 Session Title: Remanufacturing and Recycling Operations.......................36SU-6-1 Session Title: Remanufacturing....................................................................37SU-6-3-2 Session Title: Environmental Management Strategies and Systems in Manufacturing: Cutting-Edge Approaches....................................................................38SU-6-3-3 Session Title: Environmental Management...............................................40MO-6-1 Session Title: Environmental Management in Operations II.....................41

Track: Global Operations Management Track..................................................................42SA-7-3 Session Title: Global Sourcing Strategies....................................................42SU-7-1 Session Title: Global Manufacturing Networks...........................................43SU-7-2 Session Title: Global Production Strategies.................................................44SU-7-3 Session Title: Global Production Organizations...........................................45Session Chair: Yangjiang Shi, Cambridge University, ys@eng.cam.ac.uk...................45

Track: Global Supply Chain Management.......................................................................46SA-8-1-1 Session Title: Relationships and Networks in GSCM...............................46SA-8-1-2 Session Title: Managing the Global Supply Chain...................................47SA-8-2-1 Session Title: The Impact of Information on GSCM................................49SA-8-2-2 Session Title: Reverse Logistics in GSCM...............................................49SA-8-3 Session Title: GSCM Theory and Taxonomies...........................................51SU-8-1-1 Session Title: Inventory and Production Management in GSCM.............52SU-8-1-2 Session Title: Case Studies in GSCM.......................................................53SU-8-2 Session Title: Sourcing and Supplier Management in GSCM....................55MO-8-1 Session Title: Modelling the Global Supply Chain...................................56MO-8-2 Session Title: Conceptual Models of GSCM............................................57MO-8-3 Session Title: GSCM Strategy and Performance......................................59

Track: Healthcare Management.........................................................................................60SA-9-3 Session Title: Scheduling and Allocation of Health Care Resources...........60SU-9-1 Session Title: Managing the Health Care Enterprise....................................61SU-9-2 Session Title: Quality Improvement in Health Care Delivery......................62SU-9-3 Session title: Methodologies and Issues for Solving Health Care Delivery Problems 63

Track: Hospitality and Tourism.........................................................................................64MO-10-1 Session Title: Hospitality and Tourism......................................................64MO-10-3 Session Title: Hospitality and Tourism Location and Layout....................65

Track: Innovations in Teaching and Learning...................................................................66SU-11-1 Session Title: E-Learning in POM.............................................................66SU-11-2 Session Title: Taking POM To New Audiences........................................68MO-11-1 Session Title: Computer Methods In Classroom Instructions....................69MO-11-2 Session Title: Special Issues in POM Learning.........................................70

Track: JIT Manufacturing/Lean Production.....................................................................71SU-12-1 Session Title: Services, Simulation, and the Internet.................................71SU-12-2 Session Title: Surveys and Practices..........................................................72

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SU-12-3 Session Title: Modeling Approaches.........................................................73MO-12-1 Session Title: Manufacturing Case Studies................................................74

Track: Logistics and Distribution......................................................................................76MO-13-2-1 Session Title: The Logistics of New Business Models...........................76MO-13-2-2 Session Title: Changing Roles of Retailers, Distributors, and Third Party Logistics Providers in the Supply Chain........................................................................77MO-13-3-1 Session Title: Improving Logistics and Supply Chain Performance......79MO-13-3-2 Session Title: Information Technology in Logistics and Supply Chain Management 80

Track: OM in Entrepreneurship.........................................................................................82MO-14-3 Session Title: OM in Entrepreneurship......................................................82Session Chair: TBD........................................................................................................82

Track: Operations Planning, Scheduling, and Control......................................................83SA-16-1-1 Session Title: Production and Maintenance Control...............................83SA-16-1-2 Session Title: Models and Methods for Operations Systems.................84SA-16-2-1 Session Title: Design And Operational Issues in Maritime Container Terminals 86SA-16-2-2 Session Title: Scheduling Problems........................................................87

SA-16-3 Session Title: Operations Planning, Scheduling and Control.......................89SU-16-1 Session Title: Supply Chain Management.....................................................91

MO-16-1 Session Title: Some Production Scheduling Problems..............................93MO-16-2-1 Session Title: Analysis of Manufacturing Decisions..............................94MO-16-2-2 Session Title: Production and Inventory Planning Problems..................96MO-16-3 Session Title: Production Control Methods and Analysis..........................97

Track: Operations Strategy................................................................................................99SA-17-1 Session Title: Process design and assessment............................................99SA-17-2-1 Session Title: Organization and Human Factors...................................100SA-17-2-2 Session Title: A Network Perspective..................................................102SA-17-3 Session Title: Knowledge Perspectives on Operations Strategy..............103Su-17-1 Session Title :Competition and performance...........................................105SU-17-2 Session Title: Strategic changes...............................................................106SU-17-3 Session Title: Tools for Analyzing Operations Strategy..........................108MO-17-1 Session Title: Research in Operations Strategy.......................................109

Track: Product and Process Design.................................................................................110MO-18-1 Session Title: Issues in Product Design and Development......................110MO-18-3-2 Session Title: Issues in Product and Process Design............................111MO-18-3-3 Session Title: Process Design Issues....................................................112

Track: Quality/Process Improvement and Management.................................................114SA-19-1 Session Title: Managing Supply Chain Quality.......................................114SA-19-2 Session Title: Quality Awards, Certification and Performance...............115SA-19-3-1 Session Title: International Quality Practices: Empirical Studies........116SA-19-3-2 Session Title: Quality Optimization......................................................117SU-19-1 Session Title: Performance Measurement Systems..................................118SU-19-2 Session Title: Organizational Behavior Quality Issues in Public and Private Sectors 120SU-19-3 Session Title: Understanding Quality Implementation: Learning from Experience 121MO-19-1 Session Title: TQM Implementation: Models and Tools.........................122MO-19-2 Session Title: Quality-Continuous Improvement Salsa..........................123

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Track: Service Operations Management Track...............................................................124SA-20-1 Session Title: Classification and design of services.................................124SA-20-2 Session Title: Information technology and technology management for service operations.........................................................................................................126SA-20-3 Session Title: Service quality...................................................................127SU-20-1 Session Title: Models for understanding service operations....................129SU-20-2 Session Title: Managing service operations for customer satisfaction....130SU-20-3 Session Title: The impact of firm and national culture on service operations performance................................................................................................132

Track: Technology and Information Management..........................................................133SA-21-1 Session Title: Information Systems Strategy...........................................133SA-21-2 Session Title: Design and Development of Information Systems............135SA-21-3 Session Title: Information Technology in Manufacturing.......................136MO-21-1 Session Title: Information Technology in Service Industry....................137MO-21-3 Session Title: Information Technology Case Studies and Applications. .139

Track: Special Sessions...................................................................................................141MO-22-1 Session Title: Special Session 1............................................................141

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About this Schedule

Since people will be using this schedule to make travel arrangements, we simply cannot make changes to the schedule, unless a change is being made to correct an error or omission. This schedule will also be posted to the POMS web page (http://poms.org/).

If you, or a participant in your session, are unable to attend a session, please seek an alternate presenter or determine if a logical (based on topic) swap can be made with someone in another session within the same track. In isolated cases, very active presenters may have to present at the beginning of one session and the end of another occurring during the same time block.

Please let your Track Chair know about any inaccuracies in your presentation information so we publish an accurate Program and Proceedings. Thank you.

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Summary Program Outline

Friday, Mar. 30Registration Begins 12:00 noon to 6:00PMWorkshops 1:00 PM to 5:00 PM

Saturday, Mar. 31Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMIntroduction of Mayor 8:15 AMMayor of Orlando Welcome 8:30 AMClay Christianson Plenary 9:00 to 10:15 AMCoffee 10:15 to 10:45Exhibits Open 10:15 to 3:30 PMParallel Sessions Begin 10:45 to 12:15 PMLunch Poolside (fee $12 PP) 12:30 to 1:30 PMParallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMDoctoral Consortium 1:30 to 5:00 PMPresident’s Doctoral 6:30 PM to 8:30 PMConsortium Reception (sponsorship by Tulane University’s Freeman School of Business)

Sunday, April 1Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMChrister Karlsson Plenary 8:00 to 9:00 AMCoffee Break 9:00 to 9:30 AMParallel Sessions 9:30-11:00 AM Banquet and Awards Noon to 1:30 PM Parallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMDISNEY Reception 7:00 to 9:00 PM (Transportation begins at 6:40 PM)

Monday, April 2Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMDisney Plenary 8:00 to 9:30 AMCoffee 9:30 to 10:00AMExhibits Open 9:30 to 3:30 PMParallel Sessions 10:00 to 11:30 AMLunch Poolside (fee $12 PP) Noon to 1:30 PMParallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMWick Skinner Awards 5:15 to 6:15PM and closing Session

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Day’s Overview: Friday, March 30

Registration Begins 12:00 noon to 6:00PM

Workshops 1:00 PM to 5:00 PM

SCOR: A New Tool to Improve Supply Chain Efficiency and Achieve Best Practice

Time and Place: Friday, March 30, 1:00-5:00 PM, Salon A

The Supply-Chain Operations Reference-model (SCOR) was developed in 1996 by 70 of today's leading manufacturers working with Pittiglio Rabin Todd & McGrath (PRTM) and AMR Research. Since then, it has been tested and is being adopted by many of the Supply-Chain Council's 750+ member firms.SCOR is the only cross-industry supply-chain management reference model designed to describe, measure and analyze the performance of supply chain configurations. SCOR contains standard supply-chain process definitions, metrics, best practices, and references to enabling technology, which can contribute to SCM efficiency.This workshop will present an overview of SCOR and reference how some of today's leading corporations are benefiting from its use.

Digital Exchanges and Supply Chains Amiya K. Chakravarty, AB Freeman School of Business, Tulane University, akc@tulane.edu

Time and Place: Friday, March 30, 1:00-5:00 PM, Salon B

A digital exchange facilitates transfer of goods, information and payments between suppliers and customers. It can be configured to emphasize different business practices in supply chains. Currently operating exchanges categorized as access providers, transaction hubs, and alliance hubs, embed different economic drivers. They create competitive advantage through customer access, speed of transactions, process standardization, consumption externality, information transparency, resource sharing, and rapid structuring of new business models. We study the above interactions with a view to decision-making in a supply chain.

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Excursions In Scheduling TheoryJatinder N. D. GuptaDepartment of Management, Ball State University, Muncie, IN 47306Time and Place: Friday, March 30, 3:00-5:00 PM, Salon C

This seminar is designed to provide an excursion into various scheduling problems arising in the manufacturing environment and possible approaches that can be taken to solve some of these problems.  The seminar reviews the scheduling literature in the twentieth century from one specific perspective from one researcher's viewpoint and describes the mental and professional development of one person in understanding the complex field of production management in general and scheduling theory in particular.

This seminar covers the fundamental frameworks of scheduling theory, outlining various approaches that can be taken to solve (optimally or approximately) such problems, and the difficulties arising in their practical use.  Specific detailed techniques of solution algorithms are not be covered in this seminar as they are better discussed in individual encounters.  The approach taken is to identify the scheduling research paradigms in a non-mathematical and humorous way and shows some of the promising research areas for the twenty-first century.

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Day’s Overview: Saturday, Mar. 31

Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMIntroduction of Mayor 8:15 AMMayor of Orlando Welcome 8:30 AMClayton Christianson Plenary 9:00 to 10:15 AMCoffee 10:15 to 10:45Exhibits Open 10:15 to 3:30 PMParallel Sessions Begin 10:45 to 12:15 PMLunch Poolside (fee $12 PP) 12:30 to 1:30 PMParallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMDoctoral Consortium 1:30 to 5:00 PM (Kalahari)President’s Doctoral Consortium Reception 6:30 PM to 8:30 PM

(sponsorship by Tulane University’s Freeman School of Business)

Plenary Session: Do We Believe Our Own Findings? How We Could Transform Our Field Through Breakthrough Research?Presenter: Clayton ChristiansonTime and Place: Saturday, March 31, 9:00 AM – 10:15 AM, Kilimanjaro

In my remarks I will summarize my research over the last decade about howthe interaction of technological progress with the customers' ability toutilize that process can trigger the disruption and disintegration ofindustries.  I will then use these models to describe what I believe to be aserious disruptive threat to traditional schools of management, and offerthoughts about how our institutions are responding in ways that areperfectly predictable and perfectly wrong."

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SATURDAY (SA)

Parallel Sessions

Session One (1)

10:45 to 12:15

Session Two (2)

2:00 to 3:30

Session Three (3) 4:00 to 5:30

(1) Academic Administration

(2) Cases in Operations Management Salon B(3) Disney World

(4) Electronic Commerce Applications Salon B Salon B (5) Enterprise Resource Planning Kilimanjaro Kilimanjaro Kilimanjaro (6) Environmental Issues Sudan Sudan Sudan (7) Global Operations Management Salon A(8) Global Supply Chain Management 1: Salon A

2: Salon C 1: Salon A2: Salon C

Salon C

(9) Healthcare Management Executive Suite 1(10) Hospitality and Tourism(11) Innovations in Teaching and Learning(12) JIT Manufacturing – Lean Production(13) Logistics and Distribution(14) OM and Theme Parks(15) OM in Entrepreneurship(16) Operations Planning, Scheduling and Control

1: Morocco

2: Executive Suite 1

1: Morocco

2: Executive Suite 1

Morocco

(17) Operations Strategy Kenya Kenya

Executive  Suite 2

Kenya

(18) Product and Process Design(19) Quality Process Improvement Toga Toga 1: Toga

2: Executive Suite 2 (20) Service Operations Management Sahara Sahara Sahara (21) Technology and Information Management

Kalahari Casablanca Annex Casablanca Annex

(22) Special Sessions

Doctoral ConsortiumKalahari Kalahari

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Day’s Overview: Sunday, April 1

Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMChrister Karlsson Plenary 8:00 to 9:00 AMCoffee Break 9:00 to 9:30 AMParallel Sessions 9:30-11:00 AM Banquet and Awards Noon to 1:30 PM Parallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMDISNEY Reception 7:00 to 9:00 PM (Transportation begins at 6:40 PM)

Plenary Session: From Enterprise to Extraprise – The Changing Role of Industrial ManagementPresenter: Christer Karlsson, Professor at Stockholm School of Economicsand European Institute for Advanced Studies in Management, BrusselsTime and Place: Sunday, March 31, 8:00-9:00 AM, Kilimanjaro

Major challenges in industrial development, particularly for the OEM industry, strategic directions for companies, and consequences for companies and their members are outlined and analyzed. Global division of work is a concept for productive units including suppliers. Companies move from selling products to selling functions. New business logics with new entrants appear between the OEM and the customer. Economy of scale is shifting focus from production to product development. Emerging technology levels form the bases for the business mission definition, the required core competence, outsourcing, and the view of a knowledge network to be managed rather than the traditional organization. The emerging vision of the industrial company is that of a provider of a function rather than a product. Management contracts internal and external resources. There is not an organization but a projectified continuous organizing. The important capital is intangible in brands and collaborators. It is a shift from an enterprise to an extraprise.

SUNDAY (SU)

Parallel Sessions

Session One (1)

10:00 to 11:30

Session Two (2)

2:00 to 3:30

Session Three (3)

4:00 to 5:30(1) Academic Administration(2) Cases in Operations Management(3) Disney World Kilimanjaro Kilimanjaro

(4) Electronic Commerce Applications(5) Enterprise Resource Planning Kilimanjaro 1: Salon A

2: MoroccoKalahari

(6) Environmental Issues Sudan Sudan Sudan

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(7) Global Operations Management Executive Suite 2 Executive Suite 2 Executive Suite 2

(8) Global Supply Chain Management 1: Salon C2: Salon A

Salon C

(9) Healthcare Management Executive Suite 1 Executive Suite 1 Salon A(10) Hospitality and Tourism(11) Innovations in Teaching and Learning Kalahari Kalahari (12) JIT Manufacturing – Lean Production Salon B Salon B Salon B(13) Logistics and Distribution(14) OM and Theme Parks(15) OM in Entrepreneurship Executive Suite 1(16) Operations Planning, Scheduling and Control Morocco

(17) Operations Strategy Kenya Kenya Kenya

(18) Product and Process Design(19) Quality Process Improvement Toga Toga Toga

(20) Service Operations Management Sahara Sahara Sahara (21) Technology and Information Management(22) Special Sessions

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Day’s Overview: Monday, April 2

Coffee and Continental Brkfast 7:30 to 8:00AMExhibits Open 7:30 to 8:00 AMDisney Plenary 8:00 to 9:30 AMCoffee 9:30 to 10:00AMExhibits Open 9:30 to 3:30 PMParallel Sessions 10:00 to 11:30 AMLunch Poolside (fee $12 PP) Noon to 1:30 PMParallel Sessions 2:00 to 3:30 PMCoffee 3:30 to 4:00 PMParallel Sessions 4:00 to 5:30 PMWick Skinner Awards 5:15 to 6:15PM and closing Session

Plenary Session: Disney’s Great Leader's StrategyPresenter: Mr. Lee Cockerell, Vice President Operations, Walt Disney World, P.O. Box 10000, Lake Buena Vista, FL 42830.

Time and Place: Monday, April 2, 8:00-9:30AM, Kilimanjaro

The Great Leader's Strategy centers on eleven strategies for individual performance development which blends together the elements of three major process improvements:  Guest Service, Cast Excellence and Business Results.

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MONDAY (MO)

Parallel Sessions

Session One (1)

10:00 to 11:30

Session Two (2)

2:00 to 3:30

Session Three (3)

4:00-5:30(1) Academic Administration Executive Suite 2(2) Cases in Operations Management Kalahari Kalahari

(3) Disney World Kilimanjaro Kilimanjaro

(4) Electronic Commerce Applications Executive Suite 1 Kilimanjaro(5) Enterprise Resource Planning(6) Environmental Issues Sudan(7) Global Operations Management

(8) Global Supply Chain Management Salon C Salon C Salon C (9) Healthcare Management(10) Hospitality and Tourism Salon A Executive Suite 1

(11) Innovations in Teaching and Learning Togo Togo(12) JIT Manufacturing – Lean Production Executive Suite 

1

(13) Logistics and Distribution 1: Sudan 2: Sahara

Sudan Sahara

(14) OM and Theme Parks Executive Suite 2 (15) OM in Entrepreneurship(16) Operations Planning, Scheduling and Control

Morocco 1: Salon A2: Morocco

Salon A

(17) Operations Strategy Kenya Salon B

(18) Product and Process Design Kenya 1: Kenya 2: Morocco

(19) Quality Process Improvement Salon B Salon B

(20) Service Operations Management Sahara (21) Technology and Information Management

Kalahari Togo

(22) Special Sessions Executive Suite 2

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SESSION CODES 

Session Codes are unique identifiers that can be used to relate an individual presenter to a specific presentation time and location on the schedule overview for a given day.

First Two Letters Day of week (FR, SA, SU, MO)

First Number Track (See schedule overviews for each day)SA-16 = Saturday, OM in Entrepreneurship

Second Number Session Time (P=Plenary, 1=1st, 2=2nd, or 3=3rd)Third Number Used to further clarify session location if there is more than

one session at during a given timeframe for a given track. This third number will be used only when required.

Examples:

DAY-TRACK-TIMESLOT-[ORDER]

SU-3-2 = Sunday, Disney, 2-3:30, Kilimanjaro

Refer to Day’s Overview: Sunday, April 1

Note: There is only one Disney session during this timeslot so a third number was not required.

MO-19-3-2 = Monday, Product and Process Design, 4-5:30, Morocco

Refer to Day’s Overview: Monday, April 2

Note: There are two Product and Process Design sessions during this timeslot so a third number was required to identify the session (first or second).

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POM 2001 ORLANDO SCHEDULE BY TRACKS

Track: Academic AdministrationTrack chair: Manjulika Koshal, College of Business, Ohio University, Athens-OH-45701Koshal@ohio.edu

MO-1-2 Session Title: New Approaches to Structural Changes in Academia & Supply Chains.Session Chair: Manjulika Koshal, Ohio University, koshal@ohio.eduSession Time and Place: Monday, April 2, 2001, 2:00-3:30, Executive Suite 2

C4 New approach to Cluster Supply Chains-whom to join and whom to avoid, Manuela Wahl and Ralph Sleeman - Eggebert, Fraunhofer Institute IFF, P.O.Box 14 49, 39004 Magdeburg, Germany, wahl@iff.fhg.de

This paper is the result of a two year study where several Supply Chains have been investigated. They were clustered together using previously defined parameters. The C4 model can now be used to classify different Supply Chains and therefore help potential Supply Chain members to enter the ‘right’ kind of Supply Chain. Already involved Supply Chain members will be able to also adapt to structural changes and incoming projects in an unique and newly facilitated manner. A true win-win situation will be created using the optimized overall potentials of all partners in the Supply Chain.

Unified Graduate and Executive Development Programs; An Administrative View, Kahndas Nandola, Director, EMBA Program and professor of marketing, Ohio University, Athens-Ohio-45701, nandola@ohio.edu

This paper traces the impact of the harmonized approach of American Business (that actively integrates the functional areas for serving the customers) on the teaching of MBA programs. The integrated and harmonized approach of American Businesses later found its way into graduate business education. As a result, MBA students were required to work in teams on business problems rather than on functional courses. This paper deals with academic administration in business schools where graduate business degrees and non-degrees development programs are often treated as individual silos, thus overlooking the synergy and potential leverage of an integrated approach.

How Effective are Women Administrators?- A Case Study of Hong-Kong, India and Malaysia, Manjulika Koshal, Professor of Operations Management, Ohio University, Athens- OH-45701, Koshal@ohio.edu

In the global markets of the 21st century, interdependence is the way of life. There is a growing need to fully utilize the available internal human resources for competing in the world markets. Due to this pressure, nations are turning to their women work force to Rev 3-7-01

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undertake leadership positions. This study compares the perceptions of male and female executives on the effectiveness of women managers in their workplaces, in achieving organizational goals and their management styles. The study focuses on three primary regions of South Asia namely Hong-Kong, Malaysia and the Indian subcontinent.

Track: Cases in Operations Management SA-2-1 Session Title: Cases from Around the Globe

Session Chair: Roger W. Schmenner, Indiana University, rschmenn@iupui.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Salon B

Case Study: eGuo.com, Bin Xie and Xiaoyang Wang, School of Economics and Management, Tsinghua University, Beijing, xieb@em.tsinghua.edu.cn eGuo.com (it translates as eCountry), a Chinese e-commerce company, launched a one-hour delivery service in Beijing in April 2000. The site offers consumer products from the most popular 50 lines in traditional markets, including groceries, convenience items, and entertainment products. Its distribution network operates on a hub-and-spoke model, with one centralized hub and about 20 spoke stations. The "eGuo 1-hour" service has received a very positive response from Beijing’s residents. The daily number of orders reached more than 1000 in the middle of June. The current operation faces the challenge of keeping the commitment for on-time delivery in one hour. Radical Change In Supply Chain Management For The Automotive Spare Parts Business: The Case Of General Motors Brasil, Henrique L. Corrêa and Dênio Nogueira, São Paulo, Brazil, hca-henrique@correa.com.br

The paper describes the initiative triggered by GM Brazil to radically change the way it deals with spare parts supply chain management. The introduction of concepts such as vendor-managed inventory (in which GM assumes the responsibility for the demand forecast and inventory management at the dealer level) and quick response (in which GM replenishes daily dealer stocks) required both technical and behavioral approaches. Decades of a conflicting type of relationship between the assembler and the 500 dealers had to be fundamentally changed. The paper describes the initiative from scratch to the objective results obtained by GM and the dealers who have already adopted the new model: impressive reductions in inventory levels with simultaneous improvement in parts availability and service levels. Transformation in South African Manufacturing, Norman Faull and Emily Tyler, Graduate School of Business, University of Cape Town, nfaull@gsb2.uct.ac.za

The case, African Explosives Limited, describes the turnaround of a 100-year old company at the heart of the South African gold mining industry. Stripped of monopolist status in 1982, headcount declines from 8700 to 5005 by 1994. Fourteen employees are killed in a 1995 explosion, causing then majority shareholder, the UK's ICI, to dispatch a 'Mr. Fixit.' Employee adoption processes combine with best practices for a 'cost Rev 3-7-01

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reduction plus safety improvement' strategy. Management faces a hostile takeover bid and industry-wide strike in 1998. Employment drops to 2940 by December 1999 bringing further pressures in a New South Africa. Are All Industries Headed Towards The Same Organizational Structure In Product Development?, Diana Chronéer, Luleå University of Technology, Luleå, Sweden, Diana.Chroneer@ies.luth.se This study investigates organizational changes in various process industries due to new product development requirements from customers. Various industries experience a change towards a more customer-oriented view in product development projects. This paper discusses the main similarities and differences between industries in adopting suitable integration mechanisms that links suppliers and customers to the product development team. What make the organizational changes successful and what kinds of obstacles need to be solved? The companies in the study are from the ore, steel, paper, chemical, and dairy industries. The research is based on telephone interviews and a survey. The purpose is to suggest which kinds of organizational change can be appropriate for which industries. MO-2-2 Session Title: Teaching Operations Management with Cases

Session Chair: Roger W. Schmenner, Indiana University, rschmenn@iupui.eduSession Time and Place: Monday, April 2, 2001, 2:00-3:30 and 4:00-5:30, Kalahari

Prof. Michiel Leenders of the Ivey School at the University of Western Ontario [mleenders@ivey.uwo.ca], a renowned case writer and teacher, will lead a discussion on best practice in teaching operations management using cases. This session is a double session, taking up two consecutive time slots.

Track: Disney World

Track Chair: Mr. Lee Cockerall

SU-3-2 Session Title: Forecasting in the Service SectorSession Chair: Joni Newkirk, Vice President Research, Walt Disney World, P.O. Box 10000, Lake Buena Vista, FL 42830Session Time and Place: Sunday, April 1, 2001, 2:00-3:30, Kilimanjaro

SU-3-3 Session Title: Service Standards and Measurements for QualitySession Chair: Brad Rex, Vice President Operational Strategies & Metrics, Walt Disney World, P.O. Box 10000, Lake Buena Vista, FL 42830Session Time and Place: Sunday, April 1, 2001, 4:00-5:30, Kilimanjaro

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MO-3-1 Session Title: Great Leaders Strategy and Inspiration – The Real Work of LeadershipSession Chair: Lee Cockerell, Vice President Operations, Walt Disney World, P.O. Box 10000, Lake Buena Vista, FL 42830Session Time and Place: Monday, April 2, 2001, 10:00-11:30, Kilimanjaro

MO-3-2 Session Title: Supply-chain Management at Walt Disney World Session Chair: Ken Mercer, Vice President Procurement Services, Walt Disney World, P.O. Box 10000, Lake Buena Vista, FL 42830Session Time and Place: Monday, April 2, 2001, 2:00-3:30, Kilimanjaro

Track: Electronic Commerce Applications

Track Chair: Martin K. Starr, Crummer Graduate School of Business, Rollins College, Winter Park, FL 32789, mstarr@rollins.edu

SA-4-2 Session Title: E-Business And Supply Chain Management Session Chair: Robert S. Collins, IMD, International Institute for Management Development, Lausanne, Switzerland, collins@imd.chTime and Place: Saturday, March 31, 2001, 2:00-3:30, Salon B

The Impact Of E-Business On Supply Chain Management, Simon Croom and Ram Venuprasad, both at Warwick Business School, University of Warwick, simon.croom@warwick.ac.uk We argue that supply chain management is becoming the major focus of attention for organisations pursuing e-business development. In our interview and case-based research study of UK organisations conducted in the summer of 2000, supply chain integration was found to be the number one concern in E-Business implementation. Furthermore, the majority of organisations are adopting a customer-led strategy, which is placing increased requirements on operations to meet the demand for speed and flexibility. In this paper we will report on our research findings, and show how supply chain management in the UK is evolving within an e-business context, giving particular regard to the evidence supporting a five-stage model for supply chain e-business development.

A Survey Of Buyer-Supplier Interactions In Internet Supply Chain Management - Can Reality Live Up To The Hype? Ken Boyer, Eli Broad College of Business, Michigan State University, boyerk@msu.edu, John R. Olson, DePaul University, jolson@wppost.depaul.edu

We seek to identify areas where online commerce is quicker, more accurate, less time consuming or provides better quality service. We also will examine techniques or factors that influence whether the success online commerce, such as product type, transaction type, degree of linkage between processes and the degree of information technology linkage. The objective is to provide information that will help streamline and improve Rev 3-7-01

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online processes at both ends of the supply chain. We have collected data via a survey of 416 customers of Office Depot, a leading traditional and internet retailer of office products. The survey was carefully pre-designed and the sample selected to provide a well-stratified sample of customers that have all used the internet (to varying degrees) to purchase products. This data will be used to examine the ways in which internet purchasing is conducted and the outcomes associated with this new approach.

Integrating E-Commerce Topics Into A Logistics Course, Edie Schmidt and Ana Gallegos, both at the Department of Industrial Technology, Purdue University, schmidte@purdue.edu

E-commerce” is a word heard daily, but how to integrate e-commerce applications into existing business courses has not been well established. While an e-commerce course might be offered, other courses such as logistics have not been modified to include e-commerce strategies. The purpose of this paper is to identify key areas where companies use e-commerce applications for performing logistics functions. We describe how a logistics course will be modified to include these e-commerce topics. This includes the development of several modules, lesson plans, and instructional guidelines.

Choosing Auction Strategies as a Component of E-Commerce Strategies Based on Organizational Characteristics of Brick-and-Mortar Firms, Rhonda L. Hensley, School of Business and Economics, North Carolina A&T State University, hensleyr@ncat.eduThis paper provides a conceptual basis for choosing electronic auction strategies as part of an electronic commerce strategy and discusses auction strategy impact on the operations of brick and mortar firms. The concepts of sustaining/disruptive technological change and information intensity are used to make the case for the development of company specific strategies to achieve competitive advantage. Three auction strategies are identified and described using Porter’s value chain model to provide an understanding of the impact of the auction strategies on the organization’s activities and to identify important linkages between operational activities that each organization should consider carefully.

SA-4-3 Session Title: Operations of E-SellingSession Chair: René B. M. de Koster, Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands, rkoster@fbk.eur.nlTime and Place: Saturday, March 31, 2001, 4:00-5:30, Salon B

Distribution Strategies For E-Tailers, René B.M. de Koster, Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands, rkoster@fbk.eur.nl

One of the challenges for Internet retailers is how to organize the logistic fulfillment processes involved with a customer purchase. This paper investigates the various feasible distribution strategies for retailers. A research model is proposed that suggests a relation between customer service, operational complexity and existence of a traditional Rev 3-7-01

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distribution channel as independent variables and the company’s Internet distribution strategy as dependent variable. Hypotheses are formulated and the model is tested with data from some Internet retailers. One of the conclusions is that complex operations fulfill orders from special Internet warehouses and deliver locally only.An Analysis Of E-Retailing Trends During The 1999 Christmas Season: A Field Study, Jiaqin Yang, Adan Gossar, Tong Hong, Mazhar Malik, Hiuying Ma, Fred Adjei, Angela Nyaema, Julius Chege, and Jesus Rodriguez, all with the Department of Management, Georgia College & State University, jyang@mail.gcsu.edu

This paper presents the results of a survey study about on-line shopping during 1999 Christmas season. The research objective is to investigate the trends and level of prevalence of on-line shopping (i.e., e-retailing) focusing on the issues of: the impact of familiarity to computers, time-consuming, convenience, product quality and price, variety of choice, payment methods, security concerns, impersonal interactions, on-time delivery, product return policy, and improper handling of products or services. With a 50% of responding rate (from 400 survey questionnaires), several statistical techniques are used to analyze the survey results. Managerial implications are then discussed based on the statistical analysis results.

A Virtual Supermarket Through The Customers’ Eyes, Alexandre R. Graeml, Fundação Getúlio Vargas (EAESP-FGV) / Centro Federal de Educação Tecnológica do Paraná (CEFET-PR) / Centro Universitário Positivo – Brazil, graeml@per.com.brKarin S. Graeml, Universidade Federal de Santa Catarina (UFSC) – Brazil, karin.graeml@per.com.br and Andrea V. Steil, Universidade Federal de Santa Catarina (UFSC) – Brazil, asteil@eps.ufsc.br

This paper deals with one of the industries that has been experimenting with the internet world, although its digital version hasn't, apparently, been able to draw enough attention from the customers to make the traditional enterprises feel threatened, so far. It is the supermarkets industry. The authors carried out a survey, which focused on capturing the participants' impressions on their first contact with the electronic commerce service of a chain of supermarkets in the state of Paraná, in Brazil. Participants were all well acquainted with computers and internet navigation, in order not to have the survey results biased by computer illiteracy.

E-Tourism And The Virtual Enterprise, Annibal José Scavarda, Leonardo Junqueira Lustosa and Jose Paulo Teixeira, all with the Department of Industrial Engineering, Pontificia Universidade Catolica do Rio de Janeiro, Brazil, annibal@rdc.puc-rio.br

The dramatic change on wide-spread computer power and telecommunication facilities allowed the development of a network of small firms that divided with the manufacturing world the responsibilities of production, supplier's interactions, goods distribution, consumer marketing and several other functions. The tourism industry has also changed, and now it is in the process of transformation to absorb e-tourism activities. This paper intends to underline the virtual infrastructures and developments of this service industry, with a larger focus on the tourisms industry. This "virtual enterprise" can provide many of the benefits of vertical integration without losses in cost and flexibility

Rev 3-7-0121

MO-4-2 Session Title: Fundamentals Of E-Business And E-Knowledge Networks Session Chair : Andy Neely, Cranfield School of Management, Cranfield University, U.K., a.neely@cranfield.ac.ukSession Time and Place: Monday, April 2, 2001, 2:00pm-3:30pm, Executive Suite 1

Measuring E-Business Performance, Andy Neely and Bernard Marr, Cranfield School of Management, Cranfield University, U.K., a.neely@cranfield.ac.uk There are numerous challenges facing managers of e businesses but key among them is what they should monitor to track whether their organisations are delivering value to their customers. What should managers of eBusinesses measure? And are these measures any different to those that should be adopted by traditional business? This paper reports the results of a descriptive study into eBusiness performance measurement, which sought to establish what eBusinesses are measuring and contrast this with what traditional brick and mortar companies are measuring. The findings of the paper have implications for both eBusinesses and the brick and mortar organisations. Most significantly, it is clear from the data gathered that performance measurement is still an issue which challenges managers across the spectrum.

Managing Competence By Integrating Electronic Commerce Systems In Product Development, Kristina Laurell-Stenlund and Diana Chronéer, both at Luleå University of Technology, Div. Of Industrial Organization, Kristina.Stenlund@ies.luth.se and Diana.Chronéer@ies.luth.se

This paper is concerned with how the integration of electronic commerce systems in product development projects influences competence management. By integration we mean combining the use of e-commerce systems available on the market with the companies own systems for product and process data. Based on interviews and case studies, the role of competencies is analyzed when integrating e-commerce systems in product development. Knowledge exchange is here seen as a source for acquiring and developing competence. However, the ability to apply and to develop electronic commerce systems is a challenging managerial issue that also involves the company’s personnel skills and experiences.  Webcasting/Push Technology In Intranets And Extranets, Cheickna Sylla, CAB, School of Management, New Jersey Institute of Technology, sylla@adm.njit.edu, Khalid M. Dubas, Fayetteville State University, NC, kdubas@uncfsu.edu

Webcasting or push technology automatically sends information from the producer of information to the server or client computer of the subscriber. This paradigm is different from the traditional method of accessing web content - a method which requires an individual to seeks out information via a search engine or URL. Webcasting does not require active participation by the viewer and in this sense it is more like the television mode of information delivery. After reviewing the evolution of Webcasting, our paper considers the implications of Webcasting for the marketing decision support system and the marketing solution for product mix advertising.Rev 3-7-01

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E-Business: Challenges Of A New Business Strategy Model Developed For Brazilian Companies, Ana P. Paiva de Farias, Jose R. Farias Filho, Bianca Goulart da Costa Barros and Mara T. Salles, all with the Production Engineering Department, Federal Fluminense University (UFF), paula@civil.uff.br

This paper focuses primarily on issues related to the expansion of e-business and the challenges faced by Brazilian companies when adopting this new competitive strategy, which enables access to external markets at the same time as it increases competition. This paper also shows how crucial it is for Brazilian companies to adjust to this new change in the market. It pinpoints the importance of working on their Internet insertion strategies, focusing on the automation of their activities in the following areas: technology, internal and external communication, marketing, logistics, human resources, sales and production.This process is aimed at the optimization of management and the integration of the physical and virtual value chain.  MO-4-3 Session Title: The Virtual Factory And E-Business Aspects Of

Manufacturing Session Co-Chairs: Layek Abdel-Malek, Department of Industrial and Manufacturing Engineering, New Jersey Institute of Technology, malek@adm.njit.edu, Hamid Noori, Laurier Business School, Wilfrid Laurier University, Waterloo, Canada, hnoori@wlu.caSession Time and Place: Monday, April 2, 2001, 4:00-5:30,Kilimanjaro

The Nucleus Of An Application Service Provider In Telemanufacturing Layek Abdel-Malek, Department of Industrial and Manufacturing Engineering, New Jersey Institute of Technology, malek@adm.njit.edu;Website: www-ec.njit.edu/telemfg/

The past 5 years has witnessed a rapid growth in the use of the Internet for shopping, learning and networking. However, the adoption of the Internet in major production functions has not evolved as rapidly. In this paper we present a nucleus of an application service provider in Telemanufacturing./ e-Manufacturing that can be visited @wwwec.njit.edu/telemfg/. The ASP is accessible via the Internet and currently provides service in design of manufacturing cells, rapid prototyping, make or buy decisions, as well as evaluation of technological alternatives. More modules shall be added in the near future, such as computer aided design and computer aided manufacturing features.

The Structural Characteristics of Dispersed Manufacturing NetworkHamid Noori, Laurier Business School, Wilfrid Laurier University, Waterloo, Canada, hnoori@wlu.ca and W.B. Lee, Chair, Department of Manufacturing Engineering, Hong Kong Polytechnic University, Hong Kong, SAR, Republic of China, mfwblee@inet.polyu.edu.hk A worldwide wave of industrial restructuring and the re-emergence of “small firms” has paved the way for the evolution of dispersed manufacturing networks (DMNs) of various degrees of complexity. With the rapid advances of Internet technology, the emerging DMN mode of electronic production will create a greater opportunity for both producers

Rev 3-7-0123

and customers in the co-creation of products and markets. Such a change will have far-reaching implications in production practices beyond those of mass customization. In this summary note we will attempt to discuss some of the issues and challenges of building a responsive DMN system.

E-Knowledge: An Approach To Fostering Manufacturing Know-How At The Shop Floor, Benny Tjahjono and Bin Wu, both with Manufacturing Systems Department, School of Industrial and Manufacturing Science, Cranfield University, U. K., b.e.tjahjono.1998@cranfield.ac.uk

The rapid growth of the corporate Intranet and web technology has shown significant improvement in streamlining business processes and communications. This paper presents an application of the web technology in promoting knowledge management at the shop floor, known as e-knowledge. The system is expected to promote sharing and reusing various level of manufacturing information from assembly cell to testing area and from documentation to training. The implementation of such system has been made possible by utilizing the web programming techniques. To investigate how e-knowledge works, a business case at a major cellular telecommunication industry is presented.

Virtual Factory: Myths And Reality In The Brazilian Context, João Amato Neto, Escola Politécnica, University of São Paulo, Brazil, amato@usp.br

The concept of virtual organization ( involving virtual enterprise and virtual factory) can be understood as a kind of cooperative network enterprise and dynamic cooperative network, which, throught the utilization of the new information technologies and the new infoways ( the Internet, for example) provides the acces to new markets of products and services without the traditional limits in terms of space and time and increases the competitiveness power of the partners belong to this virtual network. The aim of this paper is to investigate (based on the context of the global industry restructuring) the emergence of the virtual enterprise and virtual factory conceptions in the Brazilian economy.

Track: Enterprise Resource Planning

Track Chair: Binshan Lin, Louisiana State University in Shreveport, LA 71115, blin@pilot.lsus.edu

  SA-5-1 Session Title: ERP & Supply Chain Integration

Session Chair: Sameer Kumar, University of St. Thomas, skumar@stthomas.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Kilmanjaro

Effective Supply Chain Using ERP Tool, Sameer Kumar, University of St. Thomas, 2115 Summit Avenue, St. Paul, Minnesota 55105 skumar@stthomas.edu

A significant benefit of implementing ERP tools comes from integrating the enterprise to its

Rev 3-7-0124

entire supply chain. No longer will the company compete in the market just on its own operational effectiveness. An enterprise will compete in the market based on the overall strength of its supply chain. The paper will present the impact of various tools and techniques to judiciously allocate enterprise resources for achieving supply chain integration.

Design and Delivery of Information System using ERP Database Management Software, Charu Chandra, Industrial & Manufacturing Systems Engineering Department, University of Michigan – Dearborn, Dearborn, MI 48128-1491, charu@umich.edu

The importance of global trade has aroused interest in Enterprise Systems as catalysts to achieving integration synchronization among businesses. Enterprise Systems encompass a total view of the enterprise with its technological and business capabilities. Therefore, the design and delivery of information for enterprises should emphasize technical and business decision-making capabilities. ERP database management software is built around learning “enterprise value chain,” including development tools, such as “Open SQL” programming and software development kit. In this paper, the design of information for a test case supply chain network, utilizing the SAP R/3 ERP database management software is illustrated.

An Overview of 3C, an Alternative to MRP II/ ERP for Supply Chain Optimization Sameer Kumar, University of St.Thomas, St. Paul, Minnesota 55105, skumar@stthomas.edu

3C - Capacity, Commonality, and Consumption, a new approach developed at Lucent Technologies, is claimed by some practitioners as a new and improved materials management alternative that eliminates the problems MRP and MRPII are unable to solve. In addition to the basics of 3C, design of an optimized supply chain using 3C approach will be presented. Other highlights of this presentation include comparisons of 3C based business operations with MRPII / ERP based systems and scope and opportunities presented by 3C in enhancing supply chain effectiveness.

ERP and Supply Chain Management in the Pharmaceutical Industry, Binshan Lin, LSU-Shreveport, Shreveport, LA 71115, blin@pilot.lsus.edu

This paper reviews the current practices of ERP implementation and supply chain management in the pharmaceutical industry. Some critical managerial implications are addressed and research opportunities are provided as well.

SA-5-2 Session Title: Case Studies in ERPSession Chair: Huei Lee, Lamar University, Beaumont, Texas 77710, leehu@hal.lamar.eduSession Time and Place: Saturday, March 31, 2001, 2:00-3:30, Kilmanjaro

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A Case Analysis of PD Glycol/Equistar's SAP installation, Huei Lee Lamar University, Beaumont, Texas 77710, leehu@hal.lamar.edu and Mary Eger 7450 Prestwick Circle, Beaumont, Texas 77707-5437 EGER@ih2000.net

The transition from one computer system to another is a monumental undertaking, which can be fraught with numerous unforeseen problems and major expenses in time, money, and personnel downtime. However, Beaumont-based PD Glycol/Equistar experienced a rather uneventful transition from a patchwork of more than 20 different software programs to a central client/server platform with SAP installation. The nearly trouble free conversion can be attributed to corporate planning, foresight, and lessons learned from mistakes made by predecessors.

Document Automation In Service Operations: A Case Study, Brad Richcreek Georgia College & State University, Milledgeville, GA 31061 & Jiaqin Yang, Georgia College & State University,Department of Management Milledgeville GA 31061, jyang@mail.gcsu.edu

This paper presents a case study about a new trend in the printing industry - “document automation”. The “document automation” can be viewed as an extended JIT (Just-In-Time) type production in printing operations - called “print-on-demand”. With the aid of new communication technology, this automation process starts from the customer-side and completes with the service delivery, including: project planning, cost estimation, job composition, graphic design, digital file conversion, disk creation, engineering drawing, publishing, hardcopy printing, binding, and lamination. This case study demonstrates that such a “document automation” can improve printing service operations significantly and represents the future for the printing service industry.

SAP R/3 at an Exxon-Mobile Refinery Plant, Kuo Lane Chen, Information Systems & Analysis Department, Lamar University, Beaumont, Texas 77710 CHENKL@hal.lamar.edu

Conversion to the SAP for Beaumont Refinery was a process that began in May of 1997 and was given the title Project Everest. One of the main objectives of Project Everest is to successfully train Mobil employees to handle the changes being made and successfully use the new SAP system. The purpose of this presentation is to describe Project Everest.

Market Reaction to ERP Implementation Announcements, David C. Hayes, University of South Florida, School of Accountancy, Tampa, Florida 33620-5500, dhayes@coba.usf.edu , James E. Hunton, jhunton@coba.usf.edu, Jacqueline L. Reck, jreck@coba.usf.edu

The objective of this research is to examine how the capital market responds when a firm announces that it plans to implement an enterprise resource planning system (ERP). This is the first study to investigate the extent to which ERP systems are deemed to add value Rev 3-7-01

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to business organizations. Study findings indicate an overall positive reaction to initial ERP announcements. Further analyses suggest that the reaction is most positive for small/healthy and large/unhealthy firms, and the reaction to small/unhealthy firms is negative. Finally, the market response to larger ERP vendors, as reflected by Oracle and SAP, is significantly more positive than smaller ERP vendors.

SA-5-3 Session Title: ERP in Academic Research and Education Session Chair: Bih-Ru Lea, University of Louisville, Louisville, KY 40292, brlea@louisville.eduSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Kilmanjaro

ERP and the Creation of Learning Communities in Business Education, George Joseph, Savannah State University, Savannah, GA 31404 josephg@tigerpaw.ssu.peachnet.edu, Reggie Leseanne, Savannah State University, Savannah, GA 31404

Internet technology is predicted to transform several industries, including education. The creation of “Learning Communities” is one institutional response to the pressures of the new environment. Learning communities are close knit and integrated methods of learning that enable even large institutions to acquire the sense of closeness and belonging of a relatively small community. This paper argues that ERP enables business curriculums to be integrated in such a manner as to form learning communities. ERP enables integration of curriculums through developing connecting points and removing redundancies between disciplines. Implementers must be aware of constraints and limitations and adequately address them.

Pedagogy and ERP: Designing instructional methods for different learning styles, Edward Desmarais, Salem State College, Salem, MA 01970-5353 edward.desmarais@salemstate.edu, Leah Ritchie, Salem State College , Salem, MA 01970-5353, leah.ritchie@salemstate.edu

ERP is a systematic approach to satisfy the information requirements for today's competitive business environment. Therefore, colleges and universities are incorporating ERP in their curricula to prepare students for these future challenges. This raises two basic questions; 1) How should they integrate ERP with the curriculum? and, 2) What instructional methods best address a variety of student's learning styles and experiences with complex information systems. This paper describes how Salem State College’s School of Business addressed these questions. Key topics include: definitions for learning, learning theories, learning styles, factors that influence learning, knowledge transfer and retention, and skill development.

ERP in an Undergraduate Treasury Management Course, George A. Hachey, Bentley College, 175 Forest St., Waltham, MA, 02154, ghachey@bentley.edu, Colin Young, Bentley College, 175 Forest St., Waltham, MA, 02154, cyoung@bentley.eduRev 3-7-01

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SAP’s R/3 system is used to illustrate best business practices in cash and treasury management. These include such activities as speeding collections by sending accurate invoices, ensuring the accuracy of deposit information and their quick availability as usable funds, paying vendors according to agreed upon credit terms to take allowable and maintain good supplier relations. SAP R/3’s functionality and report features demonstrate these business process features. The system allows for the seamless flow of information from sales invoice and purchasing document to financial accounting documents and cash management reports.

Writing a Winning ERP Proposal, Joseph Aiyeku, joseph.aiyeku@saelmstate.eduEdward Desmarais, Salem State College School of Business , Salem, MA 01970-5353, edward.desmarais@salemstate.edu, Kathy Dow, kathy.dow@salemstate.edu, Sanjay Jain, sanjay.jain@salemstate.edu . , Douglas Larson, douglas.larson@salemstate.edu . , Craig McLanahan, cmclanah@shore.net, Victor Silva, victor.silva@salemstate.edu

Incorporating ERP within an academic program is a significant commitment in time and resources (e.g. money, hardware, software, support) for the ERP vendor and the educational institution. A winning proposal must demonstrate how ERP supports the goals and objectives and the strategic plans for each of the respective parties. This paper examines the factors that the Salem State College's School of Business used to develop a proposal that the ERP vendor recommended as the model for other educational institutions to emulate.

SU-5-1 Session Title: Organizational Issues in ERP Session Chair: Jeff Stratman, Georgia Institute of Technology, Atlanta, GA 30332, jeff.stratman@mgt.gatech.eduSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Kilmanjaro

Enterprise Resource Planning Implementation in the U.S. Manufacturing SectorVince Mabert, Indiana University, Bloomington, IN 47405, mabert@indiana.edu, Ashok Soni, Indiana University, Bloomington, IN 47405, soni@indiana.edu, M.Venkatramanan, Indiana University, Bloomington, IN 47405, venkatar@indiana.edu

Enterprise Resource Planning systems have experienced a phenomenal growth in the last five years and at present they are pervasive in the US manufacturing sector. This paper describes an attempt to chronicle this phenomenon through a field study and an extensive survey. Manufacturing companies ranging in size from a few million dollars in annual revenues to over a hundred billion dollars are included in this study. The companies are further separated into small, medium and large categories to determine the impact of organization size on ERP implementation experiences. The findings from the study provide valuable insights and the testing of three research propositions regarding motivation, implementation, and results of adopting Enterprise Resource Planning systems for companies ranging in size from the very small to the very large.

Exploring Impacts of ERP Systems on Organizational Creativity and Innovation, Rev 3-7-01

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Tom Gattiker, Dept of Mgmt, Miami Univesity,

Several case studies of ERP systems running "live" in manufacturing plants suggested that these systems may have a negative impact on plant-level innovation in some situations. Two theoretical perspectives provide possible explanations for this phenomenon. ERP's high level of integration may reduce user's formation of conceptual mental models, which the IT training and learning perspective links to performance of far transfer tasks. ERP's are often more centralized and formalized than their predecessors. The creativity and innovation perspective suggests these characteristics may shift some firms' locus of innovation from the local plant level to the central level.

Organizations and ERP Systems: Conceptualizing Fit, Toni M. Somers, Wayne State University, Detroit, Michigan 48202, aa3808@wayne.edu, Klara Nelson, University of Tampa, Tampa, Florida 33606-1490 krnelson@alpha.utampa.edu

The high failure rate of Enterprise Resource Planning (ERP) implementations, and the mixed results of ERP systems, necessitates investigations that enhance our understanding of the issues involved in implementing these complex systems. The prospect of identifying and concentrating on a small number of important priorities is essential throughout the implementation of ERP systems. The conceptual applicability of Critical Success Factor (CSF) analysis to addressing the value of ERP is explored. We present a model that “conceptualizes the fit” of ERP in the firm by integrating business strategy and CSF’s that should impact the value of ERP in the organization. Appropriate propositions are drawn and implications for practice, research and theory are identified.

Enterprise Resource Planning Systems Enabled Business Process Reengineering,Palaniswamy Rajagopal, Indiana University at South Bend, South Bend, Indiana 46626, rajagopalisom@hotmail.com

Without proper usage of information technologies, modern business organizations may not be able to realize competitive advantages. But information technology investment and subsequent implementation would not result in success unless the firms first understand their requirements and develop appropriate tools to achieve better performance. This is especially true in implementation of ERP systems. The companies that implement ERP systems need to first make drastic changes in the way their businesses are organized and conducted in order to exploit the capabilities offered by the ERP systems. Though a case analysis conducted in a manufacturing company, the need to reengineer business processes before implementing ERP is understood.

SU-5-2-1 Session Title: ERP Modeling & Capacity - ISession Chair: Charu Chandra, University of Michigan-Dearborn, Dearborn, MI 48128 charu@umich.edu , Session Time and Place: Sunday, April 1, 2001, 2:00-3:30, Salon A

Rev 3-7-0129

An Integrated Methodology for the ERP Business Process Modeling , Fei-Long Chen, 4700 Westgrove St., Apt. 410, Raleigh, NC 27606, flchen@ie.nthu.edu.tw

The implementation of an ERP system usually starts with business process modeling. By doing this, the system requirement should be clarified first. Practical system design is then progressed to generate a satisfying ERP system. This research intends to develop an integrated modeling approach which incorporates Business Process Reengineering (BPR) concept and ERP implementation methodology. Development of this system is composed of four stages: (1) processes analysis and reengineering, (2) demands analysis, (3) system design, and (4) system coding. To evaluate the feasibility of the proposed methodology, the construction of a material management function for car-component manufacturers was selected for system verification.

MRP-based Finite Capacity Scheduling, Denny Hong-Mo Yeh, Fujen University, Taiwan, yeh@im.fju.edu.tw

Traditional MRP (material requirement planning) procedure does not include capacity constraints and objective functions. To have the capacity constraints included in MRP, we combine key resources and materials in the bills of material where all the components of a material are resources, and those of a resource are materials. The lead-time of a job on a resource is calculated and used as the offset-time in the BOM before the planned quantity of a material is exploded to the gross requirement of the resource. Overlapped jobs on a resource are rescheduled via some predetermined dispatching rules by management. As for the objective functions, a genetic algorithm is proposed to obtain a near-optimal schedule against various objective functions. A computational experiment is conducted to test the robustness of our approach.

Simulation Modeling for Information Management in a Supply Chain, Charu Chandra, University of Michigan-Dearborn, Dearborn, MI 48128 charu@umich.edu , Nikolai Chilov, University of Michigan-Dearborn, Dearborn, MI 48128, shilov@umich.edu

The complexity of problems and issues companies face requires unique decision-making alternatives to be developed and analyzed for problem solving. The reliance on simulation as a problem-solving tool has increased considerably. One such problem is that of a supply chain where autonomous entities collaborate to define common goals and objectives and achieve these through cooperation. The supply chain problem can be modeled in unique ways to represent many structures that it may assume. In this paper, a simulation technique utilizing a generic activity for information management is described. It is based on standard-activity form of enterprise, which recognizes that activities across supply chain members have commonality.

A Multi-Item Volume Discount Problem: a Supplier's Perspective, Wen-Chyuan Chiang, University of Tulsa, Tulsa, OK 74104, wen-chiang@utulsa.edu, Panagiotis Kouvelis, Washington University, St. Louis, Missouri 63130-4899, kouvelis@wuolin.wustl.edu

Rev 3-7-0130

We consider a multi-item volume discount problem. We present a model from a supplier's perspective. Cost structures under e-commerce applications for both buyers and suppliers are discussed.

SU-5-2-2 Session Title: ERP Modeling & Capacity - IISession Chair: Charu Chandra, University of Michigan-Dearborn, Dearborn, MI 48128 charu@umich.edu , Session Time and Place: Sunday, April 1, 2001, 2:00-3:30, Morocco

Ontology-Driven Knowledge Integration for Consumer-Focused Companies, Charu Chandra, University of Michigan-Dearborn, Dearborn, MI 48128 charu@umich.edu , Alexander V. Smirnov, St.Petersburg Institute for Informatics and Automation of Russian Academy of Sciences, St.Petersburg, 199178, Russia, smir@iias.spb.su

Modern trends of knowledge-dominated economy are from capital to intelligence intensive business environment, and product push to a consumer pull management. This has resulted in designing consumer-focused companies. Knowledge integration (KI) based on synergistic use of knowledge from multiple sources must be relevant to company goals and processes. This is accomplished via design and development of knowledge at the system, facilitator, unit, and user levels. Ontology-driven KI approach is managed by translation and mapping between different ontologies. In this paper, models for KI based on ontology representations of information are presented.

Agent Modeling for Information Management in a Supply Chain. Charu Chandra, University of Michigan-Dearborn, Dearborn, MI 48128 charu@umich.edu , Alexander V. Smirnov, St.Petersburg Institute for Informatics and Automation of Russian Academy of Sciences, St.Petersburg, 199178, Russia, smir@iias.spb.su, Leonid B. Sheremetov, Computer Science Research Center of National Technical University Nueva Industrial Vallejo México, D.F., C.P. 07738, Mexico, sher@cic.ipn.mx

In this paper, a multi agent infrastructure for information support of a supply chain network (SCN) is proposed. It consists of SCN problem domain agents and an agent platform. Member acts as a Problem domain agent, while Group serves as a Supply Chain Advisor (SCA). Management of information in a supply chain problem-solving framework is described through the use of agent modeling techniques. Use of this framework ensures interoperability among agents and reusability of components and services.

SU-5-3 Session Title: Managing Information in ERPSession Chair: Jyun-Cheng Wang, National Chung Chen University, Chia-Yi, Taiwan jcwang@mis.ccu.edu.twSession Time and Place: Sunday, April 1, 2001, 4:00-5:30, Kalahari

Rev 3-7-0131

Value-added ERP Information into Information Goods, Ming-Hui Huang, National Chung Cheng University, Chia-Yi, Taiwan, bmahmh@ccunix.ccu.edu.tw , Jyun-Cheng Wang, National Chung Chen University, Chia-Yi, Taiwan jcwang@mis.ccu.edu.tw

E-businesses using enterprise resource planning (ERP) systems as the information infrastructure generate a tremendous amount of information, including information about customers, suppliers, markets, transaction costs, the prices at which products are bought and sold, and order-fulfillment rates, etc. To turn the information contained in these systems into marketable information goods would be a key to gaining a competitive advantage and optimizing market exchange efficiencies. Treating involved business partners as an end-to-end network, a conceptual model describing this value-added process was developed. Integrating, analyzing and distributing these information goods to support management strategies across the network are elaborated.

Enterprise Resource Planning System Implementation: A Generic Reengineering Approach, Shi-Ming Huang , National Chung Cheng University, Taiwan, smhuang@mis.ccu.edu.tw, Irene Kwan, Brunel University, London, England, ijkwan@ms18.hinet.net, Shing-Han Li , shli@mis.ttu.edu.tw, Maverick Yu, maverick@mis.ccu.edu.tw

Enterprise Resource Planning (ERP) system is the solution to synergies the resources of an, usually, manufacturing industry. It seeks to streamline and integrate operation processes and information flow within a company; yet ERP systems implementation remains an issue. The implementation of an ERP system would require close collaboration between the technical team and the management of the company. The customization of the ERP package for the unique business requirements is obvious, thus, Business Process Reengineering (BPR) to transform functions of an original information system to the new ERP system is crucial. This research investigates a novel approach to integrate ISRT (Information Systems Reengineering Technology) into ERP system implementation. Our novel model includes two parts: First, the database conversion process to solve the migration problem between the new database and the old database. Second, the process flow integration to solve the functional differences problem between old system and new system. The objective of our research is to ensure total quality in an ERP system implementation.

The Impact of Performance Measures in Supply Chain Networks, Jyun-Cheng Wang , National Chung Chen University, jcwang@mis.ccu.edu.tw , Chih-Ming Hsiao, National Chung-Cheng University , gigi@mis.ccu.edu.tw

In this study, we employ the multi-agent modeling method to simulate order fulfillment processes in supply chain networks. By observing and investigating the impact of different performance measures to overall performance, we attempt to provide recommendations to supply chain managers and make the multi-agent system as a decision support tool for SCM. The result shows that SCN’s overall performance differs significantly depending upon each tier’s performance measures in divergent assembly supply chain structures. Hence, when the SCN full of self-interested entities, overall Rev 3-7-01

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performance will become lower. Only when retailers focus on quick customer responses or suppliers pursue lower costs would make overall performance relatively higher. The model we propose in the study could be augmented to fit specific industry model for further analysis.

Rev 3-7-0133

Building an ERP system for Global Logistics Management -- A Case Study of a Computer Manufacturing Company, Huei-Huang Chen, Tatung University, Taiwan hhchen@cse.ttu.edu.tw, Yu-Chung Hung, hung6599@mis.ttu.edu.tw, Shi-Ming Huang, smhuang@mis.ccu.edu.tw, Shing-Han Li, shli@mis.ttu.edu.tw

Advances in information and transportation technologies have dramatically changed the business processes, operations and management, and have made the era of global market competition a huge leap. For remaining competitive in the global market, businesses introduce an ERP system to construct their networks of global logistics. However, it is not easy to build an ERP system. Before the start-up, organizations have to review their business process, cultivate cross-culture human resource, increase the channel of capital, construct networks infrastructure, and establish a digital environment for the necessary adjustments. This paper explores the possible changes and amendments caused by building up an ERP system and the global logistics management from literature review. It also tries to induct the whole procedure of introducing an ERP system steps by steps. Finally, this paper conducts an empirical study on a multi-national computer-manufacturing company. The results of this empirical study support some findings in the previous research.

  Track: Environmental IssuesTrack Chair: Charles J Corbett, The Anderson School at UCLA , Los Angeles, CA 90095-1481, charles.corbett@anderson.ucla.edu  SA-6-1 Session Title: Supply Chain Dynamics and Environmental

ManagementSession Chair: Karen Chinander, University of Miami, kchinander@miami.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Sudan

Environmental Supply Chain Dynamics, Jeremy Hall, University of Calgary, Calgary, Alberta, Canada T2N 1N4, Jhall@mgmt.ucalgary.ca This paper investigates the circumstances under which ‘environmental supply chain dynamics’ (ESCD) emerge. ESCD is a phenomenon where environmental innovations diffuse from a customer firm to a supplier. It is based on the argument that systemic approaches are needed to understand the environmental implications of industrial systems. Furthermore, buyer-supplier relationships play a critical role in the decision-making processes of most suppliers, which in turn has the potential to stimulate environmental change within the supply chain. Based on British and Japanese food retail and British aerospace case studies, it will be shown that ESCD emerge if there is a channel leader with sufficient channel power over their suppliers, technical competencies and are themselves under specific environmental pressure.  Innovation and Environmental Performance in Automotive Manufacturing: The Role of Suppliers, Charlette A. Geffen, Pacific Northwest National Laboratory, Rev 3-7-01

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Richland, WA 99352, Sandra Rothenberg, Rochester Institute of Technology, Rochester, NY 14623, slrbbu@rit.edu This paper, based on case studies of three automotive assembly plants, explores the extent to which suppliers are a primary source of product and process innovation in bringing environmental improvements to the plant. We find that the most significant improvements in environmental performance were observed when innovative technology and open, flexible management approaches were coupled with supplier expertise. Suppliers in partnership roles were more willing to provide their latest innovations to their automotive partners and, with more knowledge of their customer’s needs, better able to provide technologies suited to particular facilities.  Exploring Linkages Between Supply Chain Complexity, Environmental Management and Operational Performance, Stephan Vachon, Richard Ivey School of Business, London, Ontario, Canada N6A 3K7, svachon@ivey.uwo.ca, Robert D. Klassen, Richard Ivey School of Business, London, Ontario, Canada N6A 3K7, rklassen@ivey.uwo.ca The importance of operational performance, such as quality and delivery speed, cannot be overstressed as just-in-time manufacturing is now commonplace and customer demands continue to tighten. At the same time, the popular business press, government regulator and environmentalists are calling on operations managers to shift away from their traditional emphasis on pollution control towards more proactive environmental practice. A conceptual model is presented that directly and indirectly links supply chain complexity, environmental orientation and operational performance. An exploratory analysis of these linkages was conducted using the data recently collected (2000) in two Canadian industries – small machine tools and non-fashion textiles. Limitations of the study and future research avenues conclude the paper.  A Framework for Green Supply Chain Costing: A Fashion Industry Example, Stefan Seuring, Carl-von-Ossietzky University Oldenburg, Birkenweg 5, 26111 Oldenburg, Germany, Stefan.Seuring@uni-oldenburg.de Green products regularly hold market shares far below 5%. Due to the environmental criteria that have to be met by these green products, they can not be purchased on “normal” markets. In contrast, it is necessary to manage and control the whole supply chain from raw materials acquisition to customer delivery and disposal. This leads to increased costs of green products. Hence, transactions costs have to be integrated, yielding a cost management framework on three levels: direct, activity-based and transaction costs.The framework will be illustrated with an example from the fashion industry.  SA-6-2 Session Title: Environmental Issues in Operations I

Session Chair: Charles J Corbett, The Anderson School at UCLA , Los Angeles, CA 90095-1481, charles.corbett@anderson.ucla.eduSession Time and Place: Saturday, March 31, 2001, 2:00-3:30, Sudan

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Risk Management in the U. S. Chemical Industry, Paul R. Kleindorfer, The Wharton School, Philadelphia, PA 19104, kleindorfer@wharton.upenn.edu The data on accident histories from some 15,000 facilities filed under the Clean Air Act Amentments 112(r) are used to characterize what chemicals have been the sources of major accidents in the U.S. and what damages to the environment, lives and property have resulted. This study also considers accident precursors associated with the management systems implemented at these facilities. Implications for regulation and management strategy are discussed. Aligning Accountability and Awareness for Environmental Performance in Operations, Karen R. Chinander, University of Miami, Coral Gables, FL 33124, kchinander@miami.edu This study assesses internal drivers of environmental awareness, including how firms are incorporating environmental objectives into the strategic planning of operations, how these objectives are communicated throughout the organization, and how management and operating personnel are held accountable for environmental performance. Challenges a firm may encounter in motivating and holding employees and process owners accountable for environmental performance are discussed, as well as a potential for inconsistencies between management’s espoused theories and theories in use. A case study of a large steel manufacturer is used to determine how accountability for and awareness of environmental objectives can be operationally implemented. Use of Quality Management Tools in Environmental Management Systems,  Use of Quality Management Tools in Environmental Management Systems, Lawrence Fredendall, Clemson University, Clemson, SC 29634-1305, flawren@clemson.edu, Peter Letmathe, Ruhr-Universit Bochum Lehrstuhl Wirstschaftswissenschaft, 44780 Bochum, Germany, peter.letmathe@ruhr-uni-bochum.de We use a series of mini-case studies to examine how firms which are implementing formal Environmental Management Systems (EMS) such as ISO14001 utilize the knowledge gained from earlier implementations of quality management systems such as ISO 9000. We have found that firms have not involved their line employees in the design of their EMS. Most firms have involved their quality managers in the EMS implementation efforts and they have adopted quality management tools for use in their EMS. We examine how these tools were adapted and the benefits gained by the firms.  SU-6-3 Session Title: Remanufacturing and Recycling Operations

Session Chair: Geraldo Ferrer, The University of North Carolina at Chapel Hill, Chapel Hill, NC 27599-3490, geraldo_ferrer@unc.eduSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Sudan

 Moving from Cost to Value Drivers via the Environmental Management System, Chris Spire, Spire Environmental Consulting, Wellington, Florida 33414, cspire@adelphia.netRev 3-7-01

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Today, many companies have moved the focus of their environmental programs from a cost center approach to a profit center or even a value driven process. This shift has been accomplished through the implementation of an Environmental Management System (EMS), the development of performance measures, the integration of the EMS into the business, the communication of progress internally and externally, and a focus on the future. The focus of this presentation will be on how to build these objectives into a strategic plan that is orchestrated by a new type of environmental manager and implemented by the coordinated effort of all facility employees. Reuse Issues in Reverse Logistics: A Disposable Camera Operation, Monique L. French, Clemson University, Clemson, SC 29634, mfrench@clemson.edu This paper models the relationships in reverse logistics. It explores reuse issues in a disposable camera operation. In the literature, reuse issues are primarily studied in "pure" remanufacturing environments. The factors deemed important in this environment may not be a concern in other environments. This study indicates that companies involved in reverse logistics are involved in a variety of reuse tasks. Important issues appear to be product complexity, process complexity, and production volume, which impact reuse choice, which determines factors of concern, thus impacting production control decisions and manufacturing performance. The Economics of Tire Remanufacturing, Geraldo Ferrer, The University of North Carolina at Chapel Hill, Chapel Hill, NC 27599-3490, geraldo_ferrer@unc.edu The paper describes the value-adding operations in the tire production process and in the tire retreading process. Once retreading is identified as the only recovery alternative that maximizes tire utilization, it is explained why heat generation is the only alternative, when retreading is not technically feasible. The paper culminates with the case of retreading, the tire remanufacturing process, and the recommendation of a simple decision rule for selecting the number of times a tire should be retreaded to maximize its utilization..

SU-6-1 Session Title: RemanufacturingSession Chair: V. Daniel R. Guide, Jr., Duquesne University, guide@duq.eduSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Sudan

Maximizing Remanufacturing Profit Using Product Acquisition Management, V. Daniel R. Guide, Jr., Duquesne University, guide@duq.edu, Ruud H. Teunter, Erasmus University Rotterdam, Luk N. Van Wasssenhove, INSEAD The profitability of remanufacturing depends on the supply of returned products and on the demand for remanufactured products. Varying respectively acquisition and selling prices may influence both the supply and demand. We develop a mathematical framework for determining the optimal prices and the corresponding profitability. The development of the model was motivated by a remanufacturer of consumer electronics. Rev 3-7-01

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We present details of the industrial scenario and benchmark the framework's performance with industrial data. Remanufacturing in the Healthcare Industry, Rajesh Srivastava, Florida Gulf Coast University, rsrivast@fgcu.edu, Bill Tousey, Lee Memorial Health System Traditionally, Single Use Devices (SUDs) have been used and discarded, as the name suggests. These SUDs include operating room devices used in areas such as arthroscopy and laparoscopy, devices such as catheters in cardiovascular surgery and in endoscopy, and other general products. However, many of these devices can be remanufactured. Remanufacturers have endured intense pressure from OEMs and the FDA. Recently, the FDA released guidelines for the remanufacture of SUDs. We examine various aspects of the remanufacture and use of such devices, including the economics, quality, and customer perception. We also examine the processes used by some of the remanufacturers.  A Description of Computer Demanufacturing: New Challenges in Operations Management, Charles D. White, Energy and Resources Group, University of California, Berkeley, CA 94720-3050, cdwhite@socrates.berkeley.edu, Sara L. Beckman, Haas School of Business, University of California, Berkeley, CA 94720-1900, beckman@haas.berkeley.eduChristine Rosen, Haas School of Business, University of California, Berkeley, CA 94720-1900, crosen@haas.berkeley.edu Entrepreneurial environmental regulation and new regulatory frameworks such as Industrial Ecology are two factors potentially motivating companies to extend their product responsibility to end-of-life management. Despite the entrance of many industrial firms into the realm of demanufacturing, a relative dearth of literature describing the complete demanufacturing process exists. In response we undertook a field study of demanufacturing in the computer and electronics industry to document and describe product recovery operations. In this paper we present a general overview of the demanufacturing supply chain, modeled as a series of discrete operational stages. In addition, we raise a number of questions at the process, product, and organizational level that warrant further consideration in operations management research. With implications for the extent of material loop “closure” suggested by Industrial Ecology, these questions affect the flow of products and materials along the demanufacturing path.  

SU-6-3-2 Session Title: Environmental Management Strategies and Systems in Manufacturing: Cutting-Edge Approaches Session Chair: Gyula Vastag, Stuttgart Institute of Management and Technology, vastag@uni-simt.deSession Time and Place: Sunday, April 1, 2001, 2:00-3:30, Sudan

 Sustainable Development as an Environmental Strategy Framework, Patrick R. Atkins, Aluminum Company of America, Patrick.Atkins@alcoa.com Rev 3-7-01

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In 2000, Alcoa initiated a process to develop and deploy a long term Environmental Strategy throughout the corporation. The principles of sustainable development were used as the basis for the framework. The process used was to visit each of Alcoa's 25 separate business units, discuss the framework for the strategy and ask each business to developtheir own strategy and action plans the are supportive of the corporate goals and targets. In this paper the Strategy Framework will be reviewed and the resulting Business Unit Strategies will be discussed. The process is proving to be a valuable way to focus the organization on longer term goals and targets and to emphasize the importance of effective management systems.   Revolutionizing Environmental Management: Web-Based Environmental Management Systems, Shaun Booth and Joseph Tell, The Solution Foundry, sbooth@solutionfoundry.com In today's Internet age, surrounded by buzzwords such as e-commerce and e-marketplace, environmental professionals in manufacturing environments are often left behind. Corporations are realizing that environmental managers need technology and tools similar to those available to other key business functions. This paper focuses on the use of a web-based environmental management system (EMS) to: (1) Facilitate a template-based approach Streamline EMS maintenance, (2) Efficiently communicate EMS information, (3) Reduce the time to ISO 14001 certification, (4) Empower and evolve the environmental professional, (5) Integrate with other management system elements. We believe that as the Internet continues to revolutionize many industries, so it soon will revolutionize environmental management. Stakeholders´ Influence, Environmental Operations Strategies and Performance: The European Evidence, Maria J. Álvarez-Gil, Universidad Carlos III. C/ Madrid 126. 28903 Getafe, Spain, catinaag@eco.uc3m.es, Jaime Rivera-Camino, Universidad Carlos III. C/ Madrid 126. 28903 Getafe, Spain, jrivera@emp.uc3m.es  This paper explores the following hypotheses: H1: There is a relationship among green business strategy, pressures from stakeholders, environmental operations strategy, and business performance (External fit). H2: There is a relationship among environmental operations strategy, environmental operations plans and programmes, and business performance (Internal fit). H3: The stronger relationship takes place when companies show high levels of external fit and internal fit simultaneously. To achieve this aim, we have applied LISREL and tested an explanatory model. Survey data were collected in 1998 from a sample consisting of 3051 manufacturing companies, representing 11 European Union countries and 14 Pilot industrial sectors or manufacturing activities.  Implementing Environmental Management Systems in Manufacturing Plants: A Multinational Comparison of Impacts and Approaches, Gyula Vastag, Stuttgart Institute of Management and Technology, vastag@uni-simt.de, Dennis A. Rondinelli, Kenan, Institute of Private Enterprise

Rev 3-7-0139

Manufacturing plants around the world are developing environmental management systems (EMS) and certifying them by ISO 14001 standards. Little information now exists, however, about differences in the strategies of and impacts on plants using different manufacturing technologies and in different countries in certifying an EMS. Do strategies differ because of national economic or cultural contexts and do impacts vary by type of manufacturing technology or process? Using a concept-mapping methodology, this study compares the objectives, targets, processes, and impacts of ISO 14001 certification of environmental management systems in aluminum manufacturing plants in the United States, Canada, and Europe. SU-6-3-3 Session Title: Environmental Management

Session Chair: Karl-Werner Hansmann, Hamburg University, D-20146 Hamburg, prof.hansmann@t-online.deSession Time and Place: Sunday, April 1, 2001, 4:00-5:30, Salon C

New Perspectives for Environmental Management of Manufacturing Companies, Karl-Werner Hansmann, Hamburg University, D-20146 Hamburg, prof.hansmann@t-online.de The paper is based on several lately developed mixed integer production planning models which show how manufacturing companies can bring into balance the objectives profit maximization and emission minimization of pollutants. Duality theory plays an eminent role linking these two goals and creating solutions which take into account the impact of emission standards on the production program, the environmental harm of pollutants and the individual economic structure of manufacturing companies.  Solutions for industrial reverse logistics systems, Kai-Ingo Voigt, Industrial Management, Lange Gasse 20, 90403 Nuremberg, Germany, voigt@industriebetriebslehre.de Abstract:Based on voluntary pledges and declarations regarding the environmentally compatible management of end-of-life vehicles (ELV) automobile manufacturers are requested to install reverse logistics systems. The paper describes a linear optimizing model that takes the main aspects of industrial reverse logistics systems into consideration, such as- uncertainty of ELV-amount,- investments in recycling capacities,- transport quantities,- treatment of different scrap/waste kinds and quantities,- different environmental impacts of materials etc. The model components are integrated into the basic conceptions of environmental management, which can be denoted as offensive an defensive environmental management. Several results are discussed. Electrical Power Brokerage – An Efficient Method to Compensate Capacity Changes Caused by the Use of Wind Energy in Power Networks, Axel Tuma, University of Bremen Potsdamer Str. 1c D-28211 Bremen, atuma@uni-bremen.de, M. Krämer, Bremer Energie Institut, W. Pfaffenberger, Energie InstitutRev 3-7-01

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 Following the actual discussion concerning the restructuring of power networks two major trends can be identified. On the one hand an increasing use of renewable energy is intended, on the other hand an opening of energy markets takes part. Due to forecasting problems especially concerning wind energy the integration of additional wind energy power causes variations in energy supply. One option to address this problem in the context of an efficient harmonisation of energy demand and supply is the use of products offered by future oriented electrical power markets. Besides a short discussion of the requirements of modern power networks and a brief analysis of technical options, economic concepts like futures and other derivative financial instruments are investigated in the scope of this paper.

MO-6-1 Session Title: Environmental Management in Operations IISession Chair: Kumar Rajaram, The Anderson School at UCLA, Los Angeles, CA 90095-1481, kumar.rajaram@anderson.ucla.eduSession Time and Place: Monday, April 2, 2001, 10:00-11:30, Sudan

Global Diffusion of ISO 9000 and ISO 14000 Certification, Charles Corbett, The Anderson School at UCLA , Los Angeles, CA 90095-1481, charles.corbett@anderson.ucla.edu, Jeh-Nan Pan, National Cheng-Kung University, Tainan, Taiwan In this paper we report on the preliminary findings of a global survey into firms’ motivations for seeking ISO 9000 and ISO 14000 certification, and their experiences with certification. The survey is being conducted in approximately 10 countries. It focuses on identifying the extent to which firms have adopted ISO 9000 and/or ISO 14000 in response to customer pressure, and whether that customer pressure depends on where the firms and their customers are located. We also examine the extent to which these factors are country- and/or industry-specific.

A Goal Programming Approach to Hazardous Waste Disposal, A. Dale Flowers, Case Western Reserve University, Cleveland, Ohio 44106, Kevin Linderman, University of Minnesota, Minneapolis, MN 55455, klinderman@csom.umn.edu Environmental waste often occurs as a direct result of operations in industrial organizations. Many organizations face the challenge of disposing waste in a manner that reduces damage to the environment. This research develops a goal-programming model that blends waste fuel for a fuel manager of a cement kiln. The fuel manager effectively takes a nonproductive form of waste disposal and turns it into a productive form of waste disposal. The results of the implementation were very positive and illustrate the possibility of simultaneously improving the environment and profitability.

Achieving Environmental and Productivity Improvements through Model-Based Process Redesign, Kumar Rajaram, The Anderson School at UCLA, Los Angeles, CA 90095-1481, kumar.rajaram@anderson.ucla.edu, Charles J. Corbett, The Anderson School at UCLA, Los Angeles, CA 90095-148, charles.corbett@anderson.ucla.edu Large-scale industrial production processes face increasingly tight environmental constraints, which can be addressed through costly but relatively simple end-of-pipe Rev 3-7-01

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solutions, or through cheaper but more subtle pollution prevention approaches. We propose an iterative procedure to achieve process improvements through model-based process redesign. This procedure is based on successive convex approximations of the process performance model, where product flows and process settings are optimized for a given configuration and the solution and dual variables of this optimization problem are used to update the process configuration. The work discussed here was implemented over a five-year period in a major European wheat starch extraction process, and led to a dramatic simplification in plant configuration. This in turn led to significant reductions in costs and in environmental impacts, valued at over $3 million annually. More significantly, the reduction in environmental impacts allowed this process to maintain current levels of output without the need for major investments to comply with new environmental constraints. 

 

Track: Global Operations Management Track Track Chairs: Kasra Ferdows, Georgetown University, ferdowsk@gunet.georgetown.edu and Edward Baker, University of Miami,ebaker@miami.edu

SA-7-3 Session Title: Global Sourcing StrategiesSession Chair: Ute Mussbach-Winter, Fraunhofer Institute, fes@ipa.fhg.deSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Salon A

Strategic Issues in Global Subcontracting – A Study of Indian Electronic Companies, Tirthapura Nagabushana, Indian Institute of Management, Bangalore, naga@iimb.ernet.in

After the economic liberalization, many small and medium sized Indian electronic companies have become global subcontractors for supplies to western countries. This analytical study of two Indian companies shows that they work on the short term objective of gaining an entry into international markets and rely mainly on the comparative advantage of operational cost. Their responses are reactive, operational and they face many problems in the satisfactory execution of contracts and fail on quality, delivery, and flexibility. The factors and processes influencing the present Indian subcontracting practices and outcomes are identified. An imperative need for Indian companies to be proactive and gain strategic advantages to become real global players is emphasized. The paper develops a framework and roadmap towards this objective.  Many Potential Advantages, But Still Many Problems: Is Mercosur Dead for the Auto Industry? Luiz Felipe Scavarda, Luiz Antonio Scavarda, and Ute Mussbach-Winter, Fraunhofer Institute, fes@ipa.fhg.de

Rev 3-7-0142

Many regional common markets have been created in order to generate mutual protection; nevertheless, many became unable to cope with the pressure of the international markets. This paper presents the Mercosur region and analyses its effects to the local, regional and global automotive industries and its supply chain.

The origin of the initial euphoria following the birth of this common market and also its current problems are discussed, and the article also gives examples of strategies that have been used by the automotive industry in order to take advantages of Mercosur, considering the current internal crisis. In spite of the problems, the paper intends to outline the importance of Mercosur for the future of the South American Automotive Industry.

SU-7-1 Session Title: Global Manufacturing NetworksSession Chair: Marek Szwejczewski, Cranfield School of Management, m.g.szwejczewshi@cranfield.ac.ukSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Executive Suite 2

The Design and Management of Global Manufacturing Systems, Marek Szwejczewski and Mike Sweeney, Cranfield School of Management, m.g.szwejczewshi@cranfield.ac.uk

This paper details the results of a survey of manufacturing businesses that operate in five sectors of the European economy, that is the automotive, engineering, electronics, processing and household products industries. Approximately four hundred completed questionnaires constitute the database used for this study of global manufacturing network design and management.

The paper will present details on how well global manufacturing strategies are defined and the key considerations for their design. In addition the survey was used to examine the key performance indicators used to manage these networks and the actions planned for improved performance. These findings will also be presented.

 Manufacturing Networks and Supply Chains: A Manufacturing Strategy Perspective, Martin Rudberg and Jan Olhager, Linkoping Institute of Technology, martin.rudberg@ipe.liu.se

The purpose of this paper is to analyse manufacturing networks and supply chains from a manufacturing strategy perspective. Traditionally manufacturing networks and supply chains have been treated as separate research tracks, but with the ongoing globalisation of markets and manufacturing they seem likely to converge. In this paper we analyse and structure the two research areas in search for similarities and differences. We propose a framework that displays a structural comparison between the two fields, which can be used as a foundation for future research in the context of manufacturing networks and supply chains.

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Critical Factors in International Location Decision: A Delphi Study, Walailak Atthirawong and B. L. MacCarthy, University of Nottingham, epxwa@hermes.nottingham.ac.uk

This paper explores critical factors that influence international location decisions in real world situations. We first discuss the motivations of firms seeking to manufacture across borders. Using the Delphi technique, a set of international location decision factors is then identified and discussed. The Delphi study is conducted using a world-wide panel of experts that includes academics, industrialists and consultants. Issues in conducting the Delphi analysis are raised. The paper also explores how the study can be used to analyse specific international location decision problems.

  SU-7-2 Session Title: Global Production Strategies

Session Chair: Amy Zeng, Worcester Polytechnic, azeng@wpi.eduSession Time and Place: Sunday, April 1, 2001, 2:00-3:30, Executive Suite 2

 The Transition from Multidomestic Operation to Global Supply Chain Operation, Luiz Felipe Scavarda, Jochen Freese, Silvio Hamacher, and Silvio R. I. Pires, Fraunhofer Institute, fes@ipa.fhg.de

The arena of the automotive industry of many emerging countries is changing from a situation of protected markets, where local companies and multinational subsidiaries were relatively autonomous, to a new pattern where the mechanism of production involves a global and integrated supply chain. Within this trend, these industries face the interesting possibilities of becoming an important player in the international environment of global operations, taking advantage of the possibilities offered by local opportunities of production, that result I higher competitiveness, and an international market, or risking to become an irrelevant or second hand player, reducing themselves to small local markets. This paper analyses different aspects of the future scenario in some emerging countries.

 Evaluating Total Logistics Costs in Global Supply Chains, Amy Zeng, Worcester Polytechnic, azeng@wpi.edu

This paper addresses the logistics decisions at Pratt & Whitney and its joint venture in Chengdu, China. The major logistics cost items for outsourcing aircraft engine components to the joint venture are identified and a number of transportation alternatives are examined based on cost effectiveness. With the company’s current global supply chain, we have evaluated five transportation options for moving materials: all air, water-rail full container load, water-rail less than container load, water-truck full container load, and water-truck less than container load. A cost optimization model for each of these transportation modes is developed and the associated solution procedure is provided. These models provide useful guidelines for formulating sound transportation policies.

Rev 3-7-0144

 

SU-7-3 Session Title: Global Production OrganizationsSession Chair: Yangjiang Shi, Cambridge University, ys@eng.cam.ac.ukSession Time and Place: Sunday, April 1, 2001, 4:00-5:30, Executive Suite 2

 Can a Global Manufacturing Network Really Learn?, Yangjiang Shi, Cambridge University, ys@eng.cam.ac.uk

The paper includes five parts. First, it introduces the research background which leads to the finding that learning mechanisms are critical vehicles to transform manufacturing system towards globally coordinated networks. Second, the existing main streams of OL/KM have been surveyed. The paper seeks to position OL/KM of global manufacturing in a wider theoretical background, and identify its contributions and uniqueness. Third, the paper reviews the research approach and, especially, data analysis process design for OL/KM framework development. Fourth, it addresses a summary of various kinds of OL/KM mechanisms from different company case studies. It seeks to categorise them into three headings – strategic, spontaneous, and institutionalised learning – and develop an integrated framework linking three processes together. Finally, the paper highlights some differences between global manufacturing network learning and general OL/KM. It also suggest a further research work targeting on robustness of research on transnational manufacturing learning.

 Strategy Formulation and Competence Building in New Organizational Arrangements, Alfonso Fleury and Marai Tereza Fleury, Universidad San Paulo, acfleury@usp.br

Focusing on the recent evolution of industry in Brazil, this paper analyzes how firms are redefining their strategies and building their competencies to survive and compete in a context where there is a change from individual to collective efficiency. Based on a series of case studies and a survey (470 respondents), we reached the conclusion that a clear understanding of the firm’s position in the new types of arrangement (alliances, chains, clusters) is crucial for strategy formulation and competence development.

 Impact and Determinants of Teamwork, Michiya Morita, Gakushuin University, michiya.morita@gakushuin.ac.jp

The concept of teamwork is nowadays prevailing in almost all industries. It is a word to be frequently put in the rule of conducts of many companies. Its effects on performances as well as its determinants, however, have not been often seen in the academic research literature. In this research, effects of teamwork on plant performances such as speed and quality are measured and provided. The paper also considers effects of some related factors like decentralization and plant size on the relationship between teamwork and performances. As a general conclusion, we will give the confirmation of positive effects of teamwork on the performances, but some interesting effects of the related factors and Rev 3-7-01

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certain practices on teamwork will be presented. This research is based on World Class Manufacturing Project data of five countries, Germany, Italy, Japan, UK and USA.

Track: Global Supply Chain Management

SA-8-1-1 Session Title: Relationships and Networks in GSCMSession Chair: Nallan Suresh, ncsuresh@buffalo.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Salon A

The Impact of Disintermediation in Retail Supply Chains, Scott E. Sampson, Brigham Young University, 660 TNRB, Provo, UT 84602, scott_sampson@byu.edu, Stanley Fawcett, Brigham Young University, 660 TNRB, Provo, UT 84602.

Disintermediation, a major effect of the Internet economy, is both a threat and an opportunity in retail supply chains. This presentation will discuss analysis of the impact of disintermediation in retail supply chains according to various dimensions of disintermediation, such as: source of the disintermediation, perceived motivation of the disintermediator, extent of the disintermediation, involvement of the retailer in promoting disintermediation, benefits assigned to the retailer, presence of external reintermediation, etc. Impacts on trust, promotional arrangements, and after-sales support will be considered, as will the substitution of B2B with B2C relationships. Data from specific retail industries will be presented.

Product and Process Supply Chains, Vito Albino, Pierpaolo Pontrandolfo, Dipartimento di Ingegneria Meccanica e Gestionale, Politecnico di Bari, Viale Japigia 182, 70126 Bari, Italy, pontrandolfo@poliba.it In the last decade scientists have devoted a great deal of attention to supply chain management (SCM). At the same time, practitioners have tried to develop and implement SCM practices. SCM concerns the integrated management of the flows of goods and information throughout the supply chain (SC), from the source of supply to the end user, so as to insure that the right goods are delivered to the right place and in the right quantity at the right time. It then involves the effective and efficient coordination of the SC processes. In this paper, two broad types of SC are distinguished, namely the product and the process supply chains. The former includes the product suppliers, i.e. the suppliers of the materials directly going into the final product, whereas the latter consists of the process suppliers, namely the suppliers of the manufacturing infrastructure, such as equipment, machine tools, robots, vehicles, computers, and complete fabrication and assembly systems. The possible interdependencies between the diverse SC types are analyzed. It is highlighted that, on the one hand, product and process suppliers may well work independently among each others, on the other hand, they might need to intensely interact. Then, some aspects of the interdependence are examined based on some real cases. Issues such as co-location and concurrent engineering are discussed.

Rev 3-7-0146

Supply Chain Management - Results of an Empirical Study, Axel Brassler, Technical University of Ilmenau, P.O. Box 100565, D-98684 Ilmenau, Germany, axel.brassler@wirtschaft.tu-ilmenau.de

All the activities occurring along the value chain which serve to integrate and control the flow of goods, services, information and payments can be referred to as Supply Chain Management (SCM). Our understanding of the term also takes into consideration the relations between different companies and the connections between internal business processes. Together with KPMG we conducted an empirical study of the current situation and developmental trends. The following points show the main targets of the investigation: (1) the change from linear supply chain to supply networks, (2) the role of strategy, organisation and personnel as factors contributing to the success of SCM, and (3) the relation between electronic commerce and SCM.

The Role and Dynamics of Inter-Organisational Relationships in a Triadic Supply Chain of Service Exchanges, Mihalias Giannakis, Warwick Business School, Warwick University, Coventry CV4 7AL, UK, m.giannakis@warwick.ac.uk, Nigel Slack, Warwick Business School, Warwick Business School, Warwick University, Coventry CV4 7AL, UK, N.D.C.Slack@warwick.ac.uk

This research investigates the concept of Supply Chain Management (SCM) and the role of inter-organisational relationships in service organisations. SCM has become a successful strategic concept to the make or buy decision of an offering (product or a service) by a firm, to link all the trading partners and to ensure cost effective and timely movement of materials, information from the inception of the offering to the final consumer of that offering. However, the concept has not been examined extensively in different contexts than that of large manufacturing / industrial companies and the absolute majority of research deals with the management of the tangible, or physical supply chains. Service industries have replaced industrial markets in the role of economic growth as service activities represent two thirds of the national products in developed countries and at least 50% of the final value of a manufactured product is made up by services In the EU over 60% of the workforce and over 71% in the USA is engaged in services (Source: World Development Report 1999/2000, World Bank). Furthermore the increasing phenomenon of servitisation of manufacturing companies, which include services in their offerings as well makes research in services of substantial importance.

SA-8-1-2 Session Title: Managing the Global Supply ChainSession Chair: Kyle Cattani, cattanik@bschool.unc.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Salon C

Inventory Nuances for e-Commerce Companies, Kyle Cattani, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, cattanik@bschool.unc.edu, Gilvan C. Souza,The Robert H. Smith School of Business, University of Maryland, College Park, MD 20742-1815, gsouza@rhsmith.umd.edu

Rev 3-7-0147

We explore inventory flexibility advantages possible in e-commerce. Under lost-sales we explore the possibility of blocking shipments to less-profitable customers before inventory levels drop to zero, finding situations where profits improve. We analyze the effect of a backlogging policy and conclude that profits might decline if backlogging occurs for the less-profitable customers. We also explore the possibility of using multiple modes of transportation to meet customer requirement dates. Assuming stochastic demands and replenishment times, we identify scenarios in which it is beneficial to use a more expensive transportation means than the customer specified in order to postpone the actual shipment.

Is Make-to-Order Made for You?, Glen Schmidt, Georgetown University, Washington, DC 20057, schmidtg@msb.edu, Kyle Cattani, UNC-Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, cattanik@bschool.unc.edu, Ely Dahan, MIT Sloan School of Management, 38 Memorial Drive, E56-323, Cambridge, MA 02142, edahan@stanford.edu

We explore the conditions under which the firm should pursue make-to-order (MTO) production, make-to-stock (MTS) production, or a dual strategy (a combination of MTS and MTO). The optimal approach is a function of both demand considerations (e.g., some customers prefer immediate delivery from stock, while others prefer to wait for tailored products) and supply considerations (the relative production costs of MTO and MTS).

Allocation of Limited Supply Using Auctions, Alex Brown, Vanderbilt University, Nashville, TN 37203, alex.brown@owen.vanderbilt.edu, Juan Echeverria, Vanderbilt University, Nashville, TN 37203, juan.echeverria@owen2001.vanderbilt.edu, Pradeep Parameswaran, Vanderbilt University, Nashville, TN 37203, Pradeep.Parameswaran@owen2001.vanderbilt.edu

Periods of limited supply commonly plague manufacturers and suppliers in the high-tech and auto industries. We explore an auction-based mechanism for efficient and fair allocation of supply. We report experimental results contrasting the mechanism with other allocation schemes and reporting the impact on the supply chain.

Managing Dual Distribution Channels: OM Opportunities, Karen Donohue, University of Minnesota, Minneapolis, MN 55355, kdonohue@csom.umn.edu, Marshall Fisher, University of Pennsylvania, Philadelphia, PA 19104, fisher@opim.wharton.upenn.edu

We report on an empirical study of 4 retailers who produce products for sale in their own retail stores as well as through wholesale channels. We find that each channel offers unique advantages in terms of accessibility to customer and competitor information, inventory replenishment opportunities, brand awareness and strategies for new product introductions. We identify three opportunities for leveraging operations between such channels and outline strategies to exploit these opportunities.

Rev 3-7-0148

SA-8-2-1 Session Title: The Impact of Information on GSCMSession Chair: Wendell Gilland, gillandw@bschool.unc.eduSession Time and Place: Saturday, March 31, 2001, 2:00-3:30, Salon A

Supply Chain Scheduling: Synchronizing Priorities Across the Supply Chain, Wendell Gilland, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, gillandw@bschool.unc.edu, Donald Warsing, Pennsylvania State University, 509 Business Administration Building, University Park, PA 16802-3005, dpw11@psu.edu

No abstract provided.

Supply Chain Competition: How More Information Can Hurt You, Krishnan S. Anand, The Wharton School, University of Pennsylvania, 1300 Steinberg Hall - Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104-6366, anandk@wharton.upenn.edu

No abstract provided.

A Model of Logistics Postponement with Bayesian Demand Updates, Donald Warsing, Pennsylvania State University, 509 Business Administration Building, University Park, PA 16802-3005, dpw11@psu.edu, Ann Marucheck, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, maruchea@bschool.unc.edu

No abstract provided.

SA-8-2-2 Session Title: Reverse Logistics in GSCMSession Chair: Geraldo Ferrer, ferrerg@bschool.unc.eduSession Time and Place: Saturday, March 31, 2001, 2:00-3:30, Salon C

Production Line Reconfiguration for Remanufacturing, Uday S. Rao, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213, urao@andrew.cmu.edu, Jayashankar M. Swaminathan, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, swaminaj@bschool.unc.edu, Jun Zhang, Department of Computer Science, University of Kentucky, 773 Anderson Hall, Lexington, KY 40506-0046, jzhang@cs.uky.edu

Motivated by a capacity management problem at Visteon's re-manufacturing facility, we study production line reconfiguration for a four task serial, asynchronous assembly system with no buffer inventory. We develop an analytical model that simultaneously considers line balancing and line length to maximize the reman system's effective per stage throughput. We provide analytical results on the change in throughput with line length for the exponential and uniform distribution. Using computational experiments, we provide managerial insights on the effects of task processing time variability and correlation on line reconfiguration decisions and we study the marginal benefits of dynamic line balancing.Rev 3-7-01

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Heuristics on Reverse Logistics, Rico Wojanowski, Fraunhofer Institute IFF, P.O. Box 14 49, 39004 Magdeburg, Germany, wojanowski@iff.fhg.de, Ralph Seelmann-Eggebert, Fraunhofer Institute IFF, P.O. Box 14 49, 39004, Magdeburg, Germany, seelmann@iff.fhg.de

The basis for an ecological economy structure is primarily the process of recycling. Especially in only partially closed recycling cycles the challenge to decide between the options recycling, new production, and waste disposal arises. A special challenge of this complex problem exists in the consideration of more periodical dependencies and the creation of amounts based on quick costs. Based on a circulation model often used in literature, this paper as result of a three year research study closes the methodical gap between the up to now examined dynamical approaches without fixed costs and the static approaches with fixed costs. This can be achieved by developing different heuristics having a high efficiency of their low calculation effort and their ability to adjust fast. The differences between models with and without disposal options will be shown and the individual approaches indicated. The developed methods were examined in software that allows a good comparison of the solutions. A critical discussion about the functionality of the different approaches explains the different quality of the heuristics.

Return Handling Options and Order Quantities for Single Period Products, Dimitrios Vlachos, Aristoteles University of Thessaloniki, P.O. Box 461, 54006 Thessaloniki, Greece, vlachos@egnatia.ee.auth.gr, Rommert Dekker, Erasmus University Rotterdam, Econometric Institute, P.O.Box 1738, 3000 DR Rotterdam, The Netherlands, rdekker@few.eur.nl

Products that are sold through E-commerce or mail sales catalogues tend to have a much higher return rate than traditional products. The returns are especially problematic for seasonal products. To support decision making in these situations we study various options, which may be considered as strategic decisions, on handling the increased return flow. Closed form analytic expressions for optimal order quantities are obtained for some models developed. Decision-making guidelines on choosing between return options and some properties of the optimal solutions are presented. We also discuss estimation of the serviceable return rate in practical situations.

An Overview of Inventory Models for Hybrid Manufacturing/ Remanufacturing, Rommert Dekker, Erasmus University Rotterdam, Econometric Institute, P.O.Box 1738, 3000 DR Rotterdam, The Netherlands, rdekker@few.eur.nl

Hybrid manufacturing /remanufacturing cases occur e.g. in the photocopier industry where parts or modules can be obtained from returned products and from new production. The problem with this dual sourcing is that although the remanufacturing can be a profitable solution, its capacity can be limited by a shortage of returned products. In this presentation we show what inventory models have been developed for this situation and what results they yield.

Rev 3-7-0150

SA-8-3 Session Title: GSCM Theory and TaxonomiesSession Chair: Maria José Alvarez, catinaag@eco.uc3m.esSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Salon C

An Information/Decision Rights Taxonomy for Supply Chain Integration, Funda Sahin, Texas A&M University, College Station, TX 77840-4217, fsahin@cgsb.tamu.edu, Powell Robinson, Texas A&M University, College Station, TX 77840-4217, probinson@cgsb.tamu.edu

This manuscript proposes a framework for classifying supply chain inventory planning and control systems based on the degree of information sharing and the degree of centralization/decentralization of decision making. Utilizing the framework, we analyze traditional inventory planning systems such as statistical and requirements based approaches and identify their benefits/limitations. We conclude that ERP systems utilizing DRP/MRP 'best practices' logic do not fully utilize available planning information resulting in sub-optimal performance. We provide suggestions for future research directions based on our findings.

Lagging Behind Again? Academic Research on Supply Chain Management (1995-2000), Maria José Alvarez, University Carlos III de Madrid, C/Madrid, 126, 28903 Getafe, Spain, catinaag@eco.uc3m.es, José Antonio Alfaro, Departamento de Economía de la EmpresaUniversidad Carlos III de Madrid, c/ Madrid 126-128, Getafe, 28903 Spain, jaalfaro@emp.uc3m.es, Maria José Montes, Departamento de Economía de la Empresa, Universidad Carlos III de Madrid, c/ Madrid 126-128, Getafe, 28903 Spain, mmontes@emp.uc3m.es

The emergence of global manufacturing enterprises, globally dispersed collection of organizations which develops new coordination mechanisms to strategically align clients and suppliers, has brought to the emergence of new practices among world class companies. Is academic research on Supply Chain Management actively contributing to the development of this movement or, on the contrary, it is lagging behind?. This question in mind, we analyze the content of outstanding papers on Supply Chain Management published by most relevant POM journals from 1995 till 2000. Powerful statistical tools are employed to propose explanations concerning salient features of this research field.

Supply Chain Modeling: A Reasoned Taxonomy, Ilaria Giannoccaro, Dipartimento di Ingegneria Meccanica e Gestionale, Politecnico di Bari, Viale Japigia 182, 70126, Italy, ilaria.giannoccaro@dppiprod.poliba.it, Pierpaolo Pontrandalfo, Dipartimento di Ingegneria Meccanica e Gestionale, Politecnico di Bari, Viale Japigia 182-70126 Bari, Italy, pontrandolfo@poliba.it

In the last decades supply chain management has received great attention from both practitioners and academics. Despite a wide literature on this topic, supply chain management is very difficult to put into practice, which partly depends on the lack of Rev 3-7-01

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guidelines to match the available tools and techniques to real problems and supply chains. This paper is aimed at developing a reasoned taxonomy of the available supply chain models. This is intended to help managers select SC models that are appropriate with respect to their needs. Four categories of SC models are identified and discussed: formal models, such as the pipeline map, the supplier relationships grid, and the SCORE model; operations research models, based on linear programming, dynamic programming, markov decision process, and game theory; artificial intelligence models, e.g. based on neural networks, autonomous agents, and reinforcement learning; simulation models, which include the industrial dynamics stream of studies.

A Contingency Theory of Global Supply Chain Management, Geoffrey MacKechnie, Trinity College, Dublin 2, Ireland, gmckchni@tcd.ie, Louis Brennan, Trinity College, Dublin 2, Ireland, brennaml@tcd.ie

The historic preference for supply chains based on subsidiaries has been replaced by a trend towards the hollowing of the corporation in the form of outsourcing, either by supply through market contracting or networks of collaborative alliances. The paper draws on management theories which contrast market, hierarchy and network based modes of organizing to explain these shifting dynamics of global supply chains. The differential capabilities of these three modes to absorb transaction costs and information complexity are used to develop a contingency theory of global supply chain management. The theory is illustrated by reference to several case studies.

SU-8-1-1 Session Title: Inventory and Production Management in GSCMSession Chair: Jay Swaminathan, swaminaj@bschool.unc.eduSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Salon C

Simultaneous Production of Market-Specific and Global Products for Worldwide Demand, Kyle Cattani, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, cattanik@bschool.unc.edu, Geraldo Ferrer, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, ferrerg@bschool.unc.edu, Wendell Gilland, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, gillandw@bschool.unc.edu

This paper analyzes the simultaneous production of market-specific products tailored to the needs of individual regions and a global product that could be sold in any region. The global product costs more, but allows the decision concerning the allocation of products to regions to be delayed until after the manufacturing process has been completed. We assume that there is additional demand after the region allocation but prior to delivery, extending a traditional two-stage stochastic program with recourse to include additional uncertainty after the recourse. The optimal policy calls for the simultaneous production of market-specific and global products, even when the global product is substantially more costly than the market-specific product

Integrated Demand and Production Management in a Periodic Setting with Outsourcing, Uday S. Rao, Carnegie Mellon University, Pittsburgh, PA 15213, Rev 3-7-01

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urao@andrew.cmu.edu, Jayashankar Swaminathan, The University of North Carolina at Chapel Hill, CB#3490, Chapel Hill, NC 27599-3490, swaminaj@bschool.unc.edu, Jun Zhang, Department of Computer Science, University of Kentucky, 773 Anderson Hall, Lexington, KY 40506-0046, jzhang@cs.uky.edu

In the last few years, firms have been trying to compete along dimensions other than price - lead time being one such dimension. In this paper, we present a model that integrates lead time based production planning, in a make-to-order environment, with its impact on customer demands. We assume that the demand is stochastically related to the lead time quoted and the firm has limited production capacity in every period. The firm can use in-house capacity or outsource at a higher cost. The firm integrates demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. This lead time quote balances reduced sales due to high lead time with increased costs of quoting low lead times. We show that the expected per period profit function is quasi-concave in the lead time quoted and that the optimal lead time, for certain special cases, has a closed-form solution with a newsvendor-like structure. For the general multi-product environment, we identify the optimal production/ outsourcing policy and present a computational approach to find the optimal lead time. We prove comparative statics results for the change in optimal lead time with changes in capacity, price and cost parameters. Finally, we discuss extensions of this work.

The Strategic Use of Inventories in Procurement Contracts, Krishnan S. Anand, University of Pennsylvania, 1300 Steinberg Hall - Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104-6366, anandk@wharton.upenn.edu, Ravi Anupindi, Leonard N. Stern School of Business, NYU, 40 West 4th Street, NY 10012, r-anupindi@nwu.edu, Yehuda Bassok, Marshall School of Business, University of Southern California, Los Angeles, CA 90089, ybassok@marshall.usc.edu

No abstract provided

SU-8-1-2 Session Title: Case Studies in GSCMSession Chair: Henrique L. Corrêa, henrique@correa.com.brSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Salon A

The VW Resende (Brazil) Plant Modular Consortium Supply Chain Management Model After 5 Years of Operation: An Assessment, Henrique L. Correa, EAESP - São Paulo Business School, Rua da Consolacao, 3367 / cj 11, 01416-001 São Paulo, Brazil, henrique@correa.com.br

The paper intends to describe the results of an in depth case study performed during the year 2.000 of the VW Resende (Rio de Janeiro, Brazil) trucks and buses assembly plant. Ever since the plant was inaugurated in 1996, it has captured the attention of researchers and practitioners alike in the field of supply chain management because of the extreme outsourcing strategy adopted: there is no one single VW direct worker assembling parts in the assembly line. Seven "module" (large sub-assemblies) suppliers are in charge of not only supplying the modules but also of assembling them in the VW assembly line. Five years have now passed and several of the initial design features have changed. This Rev 3-7-01

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paper intends to describe the way the consortium is currently working and also to briefly assess the results obtained by VW in terms of quality levels and market share, among others.

Supply Chain Management in a Computer Manufacturing Company: A Case Study, Silvio R. I. Pires, NUMA-UNIMEP, Av. Demétrio Mitre 131, São Carlos, SP, Brazil, 135654-220, sripires@unimep.br, Paulo A. Parra, The Methodist University of Piracicaba, Av. Demétrio Mitre 131, São Carlos, SP, Brazil, 135654-220,

During the last decade, competition in the world has increased significantly and supply chain management has emerged as a new frontier for many companies interested in getting distinctive competencies for an effective competition. On the other hand, the computer industry with its characteristics of fast technology innovation, presents a series of managerial challenges that make difficult to implement some points of a successful supply chain management. The paper presents a case study conducted in a leader computer manufacturer company operating in Brazil, focusing on the analysis of its supply chain management and its competitive strategy. Important managerial problems are detected and a set of alternative solutions is proposed.

The Top 25 Requirements for Successful Supply Chain Integration, Stanley E. Fawcett, Brigham Young University, 668 Tanner Building, Provo, UT 84602, sef@email.byu.edu

Supply Chain management has become a hot topic and materials managers recognize and understand the common trade press definition of "suppliers' supplier to customers' customer." Yet, very few firms have achieved this level of integration. This presentation takes a look at a practical and achieveable definition of supply chain management with the goal of separating the rhetoric from the reality. The focus is on discussing the principal impediments to effective supply chain integration and identifying the top 25 requirements (integrative mechanisms) for effective supply chain integration. A content analysis of interviews with over 50 companies engaged in supply chain integration activities provides the foundation for this presentation.

Industrial Upgrading in the Productive Chains in the Brazilian Apparel Industry, Juan Ricardo Cruz-Moreira, Universidade de São Paulo, Avenida Prof. Almeida Prado, Travessa 2, No.128, Cidade Universitária, São Paulo, SP, Brazil, ricardocmoreira@hotmail.com, Afonso Fleury, University of São Paulo, Universidade de São Paulo, Avenida Prof. Almeida Prado, Travessa 2, No.128, São Paulo, SP, Brazil, acfleury@usp.br

This paper analyses the organizational and interfirm relationships in the productive chains of the apparel industry in Brazil. The main determinants of chain governance, firms’ strategies and competence building as well as the impacts on industrial upgrading are discussed based on a field research among the four biggest national firms and two international companies within Brazil. The basic hypothesis is that the Brazilian local market and production conditions allow the structuring of national apparel chains with Rev 3-7-01

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different characteristics from Apparel Global Commodity Chains-AGCC operating in other market.

SU-8-2 Session Title: Sourcing and Supplier Management in GSCMSession Chair: Keith Goffin, K.Goffin@Cranfield.ac.ukSession Time and Place: Sunday, April 1, 2001, 2:00-3:30, Salon C

A Review of Supply Chain Purchasing Strategies, Abby Ghobadian and David Gallear, Middlesex University Business School, The Burroghs, London NW4 4BT, UK, D.Gallear@mdx.ac.uk, Rose Li, Middlesex University Business School, The Burroghs, London NW4 4BT, UK, R.Li@mdx.ac.uk

In the past three decades access capacity caused by the entry of new players, technological advances, globalization, enhanced economic interdependencies, removal of trade barriers, and increased consumer sophistication have combined to create a tight competitive environment. Firms are forced to simultaneously reduce cost, improve quality, reduce delivery times, improved delivery reliability, reduced design and development, and embrace the mass customization principles. Supply chain partnership is one of the key concepts that has emerged in pursuit this Holy Grail. The objective of partnerships is to increase quality while minimizing the total costs associated with adding value incurred by both the buyer and the supplier. From a managerial perspective is important to identify the factors that influence the choice and degree of supply chain partnerships. In this paper, the authors make an attempt to identify these factors and present a matrix showing the relationship between these factors and four stages of supply chain partnership.

An Organisation's Choices in a Supply Chain Setup Involving Primary and Secondary Suppliers, Bidhu Mohanty, Norfolk State University, Norfolk, VA 23504, bbmohanty@nsu.edu, Kaushik Sahu, Flat 14, Faculty Quarters, Xavier Institute of Management, Bhubaneswar 751013, India, kaushik@ximb.ac.in

An organization (main customer) may have two primary suppliers where one of them may also be a primary supplier to the other one thus acting as a secondary supplier to the main customer. In such a situation, the main customer may have to compare certain options, some of them often conflicting, in ordering items from primary and secondary suppliers. The study attempts to formulate some guidelines for ordering process by using a simulation approach.

What Does Partnership Mean? - A Study of Supplier Management in German Manufacturing Companies, Keith Goffin, Cranfield School of Management, Cranfield, Bedford MK43 0AL, England, UK, k.goffin@cranfield.ac.uk, Marek Szwejczewski, Cranfield School of Management, Cranfield, Bedford MK43 0AL, England, UK, m.szwejczewski@cranfield.ac.uk, Fred Lemke, Cranfield School of Management, Cranfield, Bedford MK43 0AL, England, UK, f.lemke@cranfield.ac.uk, Rolf Pfeiffer, Export-Akademie Baden-Württemberg, Alteburgstraße 150, D72762 Reutlingen, Germany, rolf.pfeiffer@fh-reutlingen.deRev 3-7-01

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Supplier management is an important aspect of supply chain management, which contributes to competitive advantage. Many authors have recommended that manufacturers need to establish ‘partnerships’ with their suppliers, however there has been little empirical investigation into the exact nature and use of this approach to supplier management. To address this deficiency, in-depth interviews were conducted with managers from the electronics and engineering sectors of German manufacturing. The results clearly identify how managers perceive partnership and how it can best be achieved. The research has important implications for both practitioners and researchers focusing on supplier management and gives directions for the future.

Strategic Sourcing -- Operational and Technological Issues, Mohan Gopalakrishnan, Arizona State University West, MC 2451, 4701 West Thunderbird Road, PO Box 37100, Phoenix, AZ 85069-7100, mohan@asu.edu

In this era of globalization, strategic sourcing is a critical aspect of managing supply chains. Sourcing strategy is the relationship a buyer has with the supplier or suppliers for a material or service and varies from short-term contracts to long-term alliances. Operational issues (such as inventory management) and technological issues (such as electronic commerce) also vary with this relationship. This study examines the strategic nature of sourcing component and the role of technology in enabling the sourcing decisions. Through literature review and actual case studies we will analyze the implications of technology to strategic sourcing.

MO-8-1 Session Title: Modelling the Global Supply ChainSession Chair: Vicki Smith-Daniels, vicki.smith-daniels@asu.edu Session Time and Place: Monday, April 2, 2001, 10:00-11:30, Salon C

Dynamic Modeling of Supply Chain Synchronization, Vicki Smith-Daniels, Arizona State University, Tempe, AZ 85287-4006, vicki.smith-daniels@asu.edu, Daniel E. Rivera, Arizona State University, Department of Chemical and Materials Engineering, Tempe, AZ 85287-6006, daniel.rivera@asu.edu

Companies must be able to rapidly reconfigure their supply chains to adapt to changing conditions. Reconfiguring a supply chain means varying its structure, policies, and operating conditions to maintain or improve its performance under dynamic conditions. In this research, we employ control engineering systems concepts to model and influence the dynamics of supply chain synchronization.

The Impact of Information Sharing on Supply Chain Profits, Wooseung Jang, E3437 EBE, University of Missouri-Columbia, Columbia, MO 65211, jangw@missouri.edu, Thomas J. Crowe, University of Missouri-Columbia, Columbia, MO 65211, crowet@missouri.edu

We develop two stage supply chain models to analyze the impact of information sharing on the profits of individual players and the entire chain. The capacity for producing short Rev 3-7-01

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life cycle products has to be built well ahead of time based on ordering information from retailers. When the actual demand is higher, retailers compete to get the best possible allocation and the excess demand is gone unfulfilled. Under this scenario, we find optimal policies for suppliers and retailers with or without information sharing. Analytical results as well as numerical experiments are presented to derive greater insights from the models.

Managing Modularity and Standardization of Components for Global Product Development, He Huang, Georgia Institute of Technology, 755 Ferst Drive, Atlanta, GA 30332-0520, Nagesh Murthy, Georgia Institute of Technology, 755 Ferst Drive, Atlanta, GA 30332-0520, nagesh.murthy@mgt.gatech.edu, Soumen Ghosh, Georgia Institute of Technology, 755 Ferst Drive, Atlanta, GA 30332-0520, soumen.ghosh@mgt.gatech.edu

Firms faced with fragmented markets in high velocity environments are constantly forced to grapple with the challenge of creating economies of scale and scope. Managing modularity and standardization of components in a prudent manner can significantly relieve the cost burden to support increased product variety in such environments. The extent to which a firm should modularize and standardize designs is influenced by its ability to harness the economies of scale and scope in the supply chain. We develop a mathematical model that integrates product development and global supply chain decisions in order to minimize value chain costs in a capacity constrained environment.

Integration and Linkages Between the 4 Levels of Planning and Scheduling in Supply Chain Logistics Management, Peter Robertson, PO Box 1854, Wollongong 2500, NSW, Australia, Robertson.Peter.PW@bhp.com

Effective management of a supply chain's logistics is crucial to the achievement of key business outcomes, such as lead time performance, delivery to that lead time, resource utilisation, inventory performance and overall supply chain velocity and responsiveness. For complex supply chains especially, those outcomes can only be assured if the required planning and scheduling activites are carried out reliably. Furthermore, those planning and scheduling activities need to be flow constraint based, dynamic and linked. This paper presents a dynamic working model of a 4 level planning and scheduling process, explaining both its basis and the linkages (integration) necessary for optimum supply chain logistics performance.

MO-8-2 Session Title: Conceptual Models of GSCMSession Chair: Terri Friel, tfriel@butler.edu Session Time and Place: Monday, April 2, 2001, 2:00-3:30, Salon C

The Theory of Supply Chain Management: Concept and Dimensions - A Value-Driven Approach, Jose M. Evora, University of Western Sydney, 11/20 Harold Street, 2151 North Parramatta, NSW, Australia, evoraj@groupcolleges.edu.au

This paper explores the components of a Supply Chain Management (SCM) system. It attempts to present an efficient way of enhancing competitive advantage. In this Rev 3-7-01

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theoretical study of the firm, we will formulate an SCM model. This theory is made up of seven concepts along with their dimensions and the propositions that define and describes the concepts of their dimensions. This theory views SCM as a means to achieve competitive advantage through better focus on managing and developing ones own capability, at the same time as strategic alliances are established and effectively managed with key trading partners.

Catalyzing Value Through a Logistics Perspective, Terri Friel, Butler University, 4600 Sunset Lane, ndianapolis, IN 46260, tfriel@butler.edu, Marie-Helene Jobin, École des Hautes Études Commerciales, 3000 Chemin de la Côte-Sainte-Catherine, Montréal (Québec) H3T 2A7, Canada, Marie-Helene.Jobin@hec.ca   

Due to globalization, organizations must seek high value-added activities that add to their competitive position. The supply chain is the heart of this quest because it allows the development of new sources of value. However, greater value can be realized with the adoption of a concept of a dynamic supply chain model. In fact, the greatest potential value is probably in the interface between the enterprise and stakeholders. The ability to extract value from the physical and the virtual supply chain is imperative for successful corporations. This article models value creation from a logistics perspective and cites documented examples.

A Review of Models and Methods for Assessing the Impact of Collaborative Planning, Forecasting and Replenishment (CPFR) on Supply Chain Performance, Nallan C. Suresh, State University of New York, 325 Jacobs Management Center, Buffalo, NY 14260-4000, ncsuresh@buffalo.edu, Sangjune Park, State University of New York, 325 Jacobs Management Center, Buffalo, NY 14260-4000, spark1@acsu.buffalo.edu, Canan Kocabasoglu, State University of New York, 325 Jacobs Management Center, Buffalo, NY 14260-4000, ck22@acsu.buffalo.edu

Collaborative planning, forecasting and replenishment (CPFR) initiative, currently adopted by many types of industry emphasizes the sharing of demand, forecast and inventory information among all supply chain partners with a view to minimizing inventories, lead times, while offering a broader, customized set of end-products to customers. While data and organizational structures to accomplish this is under way, it is unclear as to how exactly firms will utilize the shared information and translate it into improved supply chain performance. This paper synthesizes analytical and simulation models developed so far to analyze the impact of information sharing on supply chain performance and present a research agenda for the systematic analysis of the impact of CPFR.

A Conceptual Model of Global Supply Chain Resource Planning Software, by Samuel Vieira Conceição, Federal University of Minas Gerais, Anexo da Engenharia – PCA, Caixa Postal, 209 30161-970, Belo Horizonte, MG, Brazil, svieira@dep.ufmg.br

The paper provides a conceptual model of a GSCRP - Global Supply Chain Resource Planning software. It involves the detailed development of supporting tools and it’s Rev 3-7-01

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associated technological and organizational processes to enable the GSCRP software implementation. The electronic commerce applications are discussed. The operating mode of each element that compounds the pillars of the GSCRP software is described in detail. The investment in technology and organizational changes as well as the interface with the ERP - Enterprise Resource Planning software is also discussed. The model also points out information access problems. Several levels of access based on information needs of each firm in the supply chain were created.

MO-8-3 Session Title: GSCM Strategy and PerformanceSession Chair: B.S. Sahay, bssahay@mdi.ac.inSession Time and Place: Monday, April 2, 2001, 4:00-5:30, Salon C

Global Supply Chain Strategy in Emerging Markets, Samuel Vieira Conceição, Federal University ofMinas Gerais, Anexo da Engenharia – PCA, Caixa Postal, 209 30161-970, Belo Horizonte – MG, Brazil, svieira@dep.ufmg.br

The article is developed in three steps. First of all, the article analyzes the major variables that characterize the turbulent environment that the firms have to face with when operating in emerging markets. Second, it points out the risks and opportunities to establish long-term partnership in emerging markets supply chain. Third, the article provides a new strategy framework to help firms to be successful in three critical areas in emerging markets supply chain: purchasing and logistics, manufacturing and product development partnership.

The New Reality of the Brazilian Automotive Industry Supply Chain, Luiz Felipe Scavarda, Department of Industrial Engineering of the Pontifícia Universidade Católica do Rio de Janeiro, Rua Marquês de Sao Vicente, 22453-900, Gávea, Rio de Janeiro, RJ, Brazil, lfscava@rdc.puc-rio.br, Silvio Hamacher, Ponticia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Engenharia Industrial, Rua Marques de São Vicente, 22453-900, Gávea, Rio de Janeiro, RJ, Brazil, hamacher@rdc.puc-rio.br

This paper describes the deep transformations that have occurred in the last years with the automotive industry in Brazil, redefining the whole productive mechanisms and reshaping the associated supply chain, including the auto-parts industry. This article starts with the main features of the Automotive Industry in Brazil and continues with the present effects of the current changes in the automotive manufacturing companies and auto-part industry. Examples of current strategies of global supply chain management that have been used by TNC (trans-national companies) and by local companies in order to take advantage of this scenario are also given.

Measuring Supply Chain Performance, Silvio R. I. Pires, NUMA-UNIMEP, Av. Demétrio Mitre 131, São Carlos, SP, 135654-220, Brazil, sripires@unimep.br, Carlos H. M. Aravechia, Universidade Metodista de Piracicaba, Santa Bárbara D'Oeste, SP, 13450-000, Brazil, aravechia@terra.com.br

Rev 3-7-0159

In the last decades performance evaluation issues have attracted the attention of many researchers and companies worldwide. However, most studies are still conducted focusing on the manufacturing processes performance and associated with financial indicators. Currently an important question is the necessity of expanding the concepts of performance evaluation to the supply chains, in order to adjust it to the contemporary supply chain management model. The proposed paper presents some key points and proposes a framework concerning to the design, implementation and management of a supply chain performance measurement system.

Supply Chain Management Practices in Indian Industry, B. S. Sahay, Management Development Institute, Mehrauli Road, Gurgaon 122 001, India, bssahay@mdi.ac.in, Vasant Cavale, Ramneesh Mohan, Renu Rajani, KPMG Consulting Private Ltd, 20/2, Vittal Mallya Road, Bangalore, India 560 001

Increasing uncertainty of supply networks, globalization of businesses, proliferation of product variety, and shortening of product life cycles have forced Indian organizations to look beyond their four walls for collaboration with supply chain partners. With a GNP of over $410b US, Indian industry spends between 12% and 15% of its revenues on logistics and close to 22% of aggregate industry sales, amounting to over $ 25b US, is tied up in inventories in the entire supply chain network. It was, therefore, felt necessary to know the supply chain practices being followed by Indian industry and to suggest the steps for perfecting supply chain. This paper is based on a joint survey, spanning 256 organizations, carried out by Management Development Institute, Gurgaon and KPMG India. The paper primarily focuses on the status of four major supply chain processes, supply chain strategy, supply chain integration, inventory management, and information technology in the Indian setup. The paper concludes that given the economic agenda of the Indian government, perfecting the supply chain will give the necessary impetus in attaining sustainable GDP growth rate of over 7% in the current fiscal year and after.

Track: Healthcare ManagementTrack Chair: William P. Pierskalla, The Anderson School at UCLA, Los Angeles, CA, 90095-1481, william.pierskalla@anderson.ucla.edu

SA-9-3 Session Title: Scheduling and Allocation of Health Care ResourcesSession Chair: Vicki Smith-Daniels, Arizona State University, College of Business, Tempe, AZ 85287-4006, vicki.smith-daniels@asu.eduSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Executive Suite 1

Midnight Census? Rethinking Hospital Staffing Procedures, David Hott, Florida Institute of Technology, School of Business, 150 University Boulevard, Melbourne, FL 32901, dhott@fit.edu, Judith Barlow, David Dorsett, Robert Inbornone.

Rev 3-7-0160

For years many hospitals have followed an industry standard using the midnight patient census as a basis for budgeting and staffing. Today’s dynamics of cost reduction and reimbursement structures have significantly changed the patient arrival and departure pattern creating a discrepancy between the actual patient care hours and the estimate from the midnight census. Hourly patient counts at each station for three hospitals have been collected over the past year. Differences between the actual and estimated patient care hours and suggested modifications to staffing procedures are presented.

Enterprise? Wide Patient Scheduling Information Systems to Coordinate Surgical Clinic and Operating Room Scheduling Can Impair Operating Room Efficiency, Rodney D. Traub, North Dakota State University, College of Business Administration, PO Box 5137, Fargo, ND 58105, rodney_traub@ndsu.nodak.edu, Franklin Dexter, Alex Macario.

There is increasing pressure on healthcare providers to control costs. One seemingly logic approach is to make use of new technologies such as Enterprise-Wide Patient Scheduling Systems (EWPS) to increase efficiencies. However, if these systems are not used properly, they may be of little assistance and can potentially cause the level of customer service to deteriorate. We provide examples of how using an EWPS to integrate clinical and operating room scheduling can have undesired effects. We also provide guidelines on programming an EWPS so that users can obtain the maximum benefits.

Dynamic Patient-Focused Workforce Planning and Scheduling, Vicki Smith-Daniels, Arizona State University, College of Business, Tempe, AZ 85287-4006,vicki.smith-daniels@asu.edu

This paper presents a new approach for planning and scheduling teams of health care providers in alternative types of health care systems including hospitals, managed care, and outpatient facilities. Using cellular manufacturing approaches, a hierarchical methodology for deriving patient care provider team configurations and assignments are derived, subject to dynamically changing patient requirements.

SU-9-1 Session Title: Managing the Health Care Enterprise

Session Chair: Richard L Luebbe, Miami University, Department of Management, 313D Laws Hall, Oxford, OH 45056, luebberl@muohio.edu Session time and Place: Sunday, April 1, 2001, 9:30-11:00, Executive Suite 1

Who is the customer? Richard L Luebbe, Miami University, Department of Management, 313D Laws Hall, Oxford, OH 45056, luebberl@muohio.edu

During the recent past there have been significant discussion about healthcare providers, the performance of HMO’s and also the idea of a patient’s bill of rights. This paper is presented from the perspective of the insured and examined nearly 500 claims for one individual that had been submitted to a primary and secondary insurance company. The insurance companies were mainstream companies of the Blue Cross/Blue Shield type. Because of the number of claims that were submitted, decision-making patterns by the Rev 3-7-01

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insurance company can be analyzed. Questions regarding who really is the customer can be addressed.

Inside Smaller Hospitals: Managing Service Operations, Nimit Chowdhary, 11/37, Malviya Nagar, Jaipur 302017 Raj, India, nimitchowdhary@hotmail.com, Bhagwati P. Saraswat, Faculty of Commerce, Maharshi Dayanand Saraswati University, Ajmer 305009 Raj India.

Liberalization and privatization has lead to changes in health care delivery. Changes in smaller hospitals are all the more chaotic and less understood. The external pressures forcing smaller hospitals to re-evaluate their efficiency, effectiveness and delivery arrangements. The present paper is a study of small hospitals in the state of Rajasthan, carried out during 1998-99. It identifies major areas of operational concerns, the location and process issued involved in healthcare delivery. The study makes a comparison of the practices in hospitals in larger cities and smaller cities. Authors also attempt to make some useful suggestions for these smaller hospitals to adopt total progressive patient care.

Operations Strategy Formulation in the Health Sector — a Case Study of a Brazilian General Hospital, Susana Carla Farias Pereira, Rua Aimbere no. 1775, apt. 62 – Summare, Sao Paolo – SP CEP 01258-020 Brazil, sfpereira@gvmail.br, Maria Laiz Zanardo, Fundação Getúlio Vargas/EAESP Departamento de Produção e Operações Industriais (POI) Av. 9 de Julho, 2029, 10o. andar São Paulo-SP CEP 01313-902 Brazil, laizz@samaritano.com.br

A well-defined and established operation strategy contributes to cater for clients' needs and expectations. In health care institutions, which are essentially service businesses, this issue is not always considered. This paper presents a case study carried out in a Brazilian major general hospital, which is based on the Slack's framework for strategy development. It is assumed that the quality of the health care services is directly linked to the patients’ satisfaction and all that depends on a well established operation strategy. Furthermore, this paper aims to contribute to widen the use of operations strategy beyond the factory floor.

SU-9-2 Session Title: Quality Improvement in Health Care DeliverySession Chair: Diane Parente, Penn State Erie, School of Business, Erie, PA 16563, dhp3@psu.eduSession time and Place: Sunday, April 1, 2001, 2:00-3:30, Executive Suite 1

Do Outcome Measures in Healthcare Reflect Quality? Paul Rackow, Fordham University, 1623 Third Avenue, New York, NY 10128, rachow@fordham.edu

Managed care advocates have argued that clinical and non-clinical outcome measures would improve over time and would reflect continuous quality improvement (CQI) as well as cost containment for which HMOs, etc., are well known. We focus on a clinical study of Bowel surgery to reflect quality improvement which leads to cost containment.

Queueing a problem that won't go away, Gerald Barlow, University of Kent, Canterbury School, Canterbury, Kent, England CT2 7PE, gerald.barlow@uce.ac.uk

Rev 3-7-0162

The paper reports on research carried out during the summer of 2000, within a National Health Hospital in the West Midlands Region of England. It looks specifically at the queueing problems in the busiest clinic of the hospital, involving the observation and questioning over 300 patients. The research considers David Maister's (1985) proposition, that satisfaction equals perception minus expectation. From the interview and observation results, it then investigates options available to the hospital's management for managing the patient's perception of the wait, and suggests operational ways of improving the actual waiting process.

Learning in Healthcare: A Flow Diagram, J. Deane Waldman, University of New Mexico, University of New Mexico School of Medicine, and RO Anderson Graduate School of Management, Albuquerque, NM 87106, dwaldman@salud.unm.edu Steven A Yourstone, Howard L. Smith.

Application of learning curve theory to medicine yields insights that can improve healthcare. A flow diagram was developed showing moderating factors, constraints to and rationales for learning (e.g., selective referral, practice-makes-perfect), and outcomes [mostly negative measures]. We conclude that: a) the second patient is a greater risk than the twentieth, b) medical outcomes can never be perfect, c) care pathways can improve quality and reduce cost, but, d) there must be an escape clause. The ultimate fate of the learning curve is questioned. A colloquy between experts in Operations and Medicine can help convert healthcare into a learning industry and improve outcomes for patients and providers alike.

Patient satisfaction with healthcare delivery: the impact of cycle time, and perceived physician contact, Diane Parente, Penn State Erie, School of Business, Erie, PA 16563, dhp3@psu.edu, Mary Beth Pinto, Michael A. Madden, M.D..

Much has been written in the services operations literature on perceived waiting time and its influence on customer satisfaction. In the health care field, in particular, a number of studies have pointed to the role that perceived waiting time plays in satisfaction. Using a sample of over 3,200 patients, we collected appointment level data and analyzed a number of issues related to total patient cycle time (waiting and “face” time) for their impact on patient satisfaction, including actual and perceived waiting time, interaction with primary care physicians, and comparison of alternative scheduling models. Based on our findings, a number of implications for the management of services operations are proposed.

SU-9-3 Session title: Methodologies and Issues for Solving Health Care Delivery ProblemsSession Chair: Martha A Centeno, Florida International University, Department of Industrial and Systems Engeneering, Miami, Florida 33199. Session time and Place: Sunday, April 1, 2001, 4:00-5:30, Salon B

An Application of Goal Programming in the Allocation of Anti-TB Drugs in Rural Health Centers in the Philippines: Giselle Joy C Esmeria, Mapua Institute of Technology, Department of Industrial Engineering, Intramuros, Manila, Philippines 1002, esmeria@tdk-phil.tdk-group.com

Rev 3-7-0163

Resource allocation, as applied to health industry, is a complex issue. This paper presents a goal programming model for determining the optimal allocation of drugs to different rural health centers. The model aims to balance the allocation of anti-TB drugs to each health center and achieve a higher cure rate of patients afflicted with tuberculosis (TB). The model developed considers the medication requirements for the treatment of patients belonging to category I – Pulmonary Smear Positive Cases and the limited supply of the drugs. The solution to the formulated model is determined with the use of Borland C++ Version 5.02 programming language designed by the author.

Expert Systems Approaches for Decision Support in Health Care, Mohamed EL Etribi, Southern Illinois University, 38 Timbercrest Lane, South Setauket, NY 11720, user71939@aol.com

The use of Expert systems (ES) in the delivery of health care is receiving greater attention due to factors such as constrained budgets, staff turnover, and increased malpractice suits. Specific ES was developed by the user. A questionnaire, which covered the twenty possible CLIA'88 codes was developed and sent to three hundred evaluators. Eighty-six valid responses were received and analyzed. The experimental results support the incorporation of ES into the present health care delivery. It suggests that ES may have wider applications in health care.

Challenges of Simulating Hospital Facilities, Martha A. Centeno, Florida International University, Department of Industrial and Systems Engeneering, Miami, Florida 33199, Elizabeth Lopez, Marsha A. Lee, Manuel Carrillo, Jackson Memorial Hospital, Miami, Florida 33136-1094, Tom Ogazon, Jackson Memorial Hospital, Miami, Florida 33136-1094.

In this paper, we present two simulation studies conducted at Jackson Memorial Hospital in Miami. The focus of the paper is not just the usage of simulation, but the challenges encounter when building and executing the model. These challenges include acceptance by hospital staff, availability of staff to describe the various processes, and the existence of useful data. Hospitals collect immense amount of data for each and every one of their patients, which may lead one to believe that developing stochastic models of patient behavior and hospital activities should be relatively easy; however, elicitation of useful information may end up being the greatest challenge in using simulation in a hospital environment because of the diverse information systems that these facilities use.

Track: Hospitality and Tourism Track Chair: William Youngdahl, Thunderbird, Glendale, AZ 85306, youngdb@t-bird.edu

MO-10-1 Session Title: Hospitality and TourismSession Chair: Annibal José Scavarda, Department of Industrial Engineering - Pontifícia Universidade Católica do Rio de Janeiro, Brazil, annibal_scavarda@hotmail.com

Rev 3-7-0164

Session Time and Place: Monday, April 2, 2001, 10:00-11:30, Salon A

Improving Efficiency And Service Quality by Using FDH models: An Application to a Fast-Food Restaurants Chain in Spain, Victor Gimenez and Josep-Lluis Martinez, Universitat Autonoma de Barcelona, Spain, Gimenez@uab.es. In this paper our purpose is double. Firstly, we define a Free Disposal Hull (FDH) model in order to evaluate the efficiency and service quality of several decision-making units. The model is defined by using a non-radial graph efficiency measure. Both constant and variables returns to scale are considered, which lead us to quantify the scale inefficiency in these models. Secondly, we apply the model to the fast-food sector in Spain. The results are very useful to managers in order to improve the restaurants efficiency and their service quality since reachable inputs reductions, outputs and quality increases are quantified as a result of a benchmarking process. Service Industry and Tourism Industry, Annibal José Scavarda, Department of Industrial Engineering - Pontifícia Universidade Católica do Rio de Janeiro, Brazil, annibal@rdc.puc-rio.br This study is based on the tourism industry, since this service industry has become the object of a fierce international competition. The paper presents the immense potential of this industry, which is considered the largest industry in the world. Its growth is due the world's new scenario: aging population, longer life expectancies, increased time pressure and leisure time, higher per capita income, changing values and technical advances. The paper intends to outline the importance of tourism in order to stimulate all the different organizations involved within this industry to make them work efficiently in a virtual chain.

The Tourism Industry Chain, Annibal José Scavarda, Universidade Católica do Rio de Janeiro, Brazil, annibal@rdc.puc-rio.br The new competitive model changed from the conventional "business unit” to "virtual business unit". Competition is now focused on productive chains instead of on companies. The same happened with the competitive tourism industry. It offers a series of typical services of an economy including hostelries, transports, restaurants, amusements etc., and requires important infrastructure, like telecommunications and logistics. This article will study this complex chain, analyzing each member of the chain and the interactions between them. It also points out the necessity to control the level within each chain and defines which activities (industries) are parts of the same chain.

MO-10-3 Session Title: Hospitality and Tourism Location and LayoutSession Chair: Gonzalo Marugán, Centro Universitario Francisco de Vitoria, volturno@teleline.es Session Time and Place: Monday, April 2, 2001, 4:00-5:30, Executive Suite 1

Rev 3-7-0165

Sol Meliá Group Location Decisions, Gonzalo Marugán Zalba , Luis Miguel Puerto Sanz, and Mª Concepción Rodríguez Benavides, Centro UniversitarioFrancisco de Vitoria, volturno@teleline.es The aim of this paper is to carry out an analysis of those factors that have any influence on the location decisions of the Spanish hotelier chain, Sol Meliá, in its process of internationalization. Firstly, we unfold an historical approach to the process of internationalization that the firm has developed, centering our analysis on Latin America. Secondly, we attend to some indicators of the location decisions of the firm. Finally, we evaluate some discussed elements, aiming at identifying those common aspects in the different countries studied.

Process Choice, Process Layout and Technology in the Hospitality Industry, Andrew Lockwood and Peter Jones, University of Surrey, Guildford Surrey, GU1 7XH, UK, A.Lockwood@surrey.ac.uk This paper considers the issues of process choice, process layout, and process technology in the context of the hospitality industry. Despite the central importance of these issues, there has been little conceptual discussion and almost no empirical research in the literature. The hospitality industry is a complex collection of customer processing, information processing and materials processing operations such that process choice often results in a ‘hybrid’ of types (job shop, batch production, mass production, mass customization) within the same operation. Moreover, due to the specific context of the industry, process layout does not always closely match process type. The resulting complexity of hospitality operations makes existing POM theory and models difficult to apply.

Track: Innovations in Teaching and Learning

Track Chairs: Harry Rosen, Zicklin School of Business, Baruch College, CUNY, New York, NY, Harry_Rosen@baruch.cuny.edu, and Susan Yeaple, Crummer Graduate School of Business, Rollins College, Winter Park, FL 32789, syeaple@rollins.edu

SU-11-1 Session Title: E-Learning in POM Session Chair: Roberta Russell, 1007 Pamplin Hall, 0235 Virginia Tech,Blacksburg, VA 24061, rrussell@vt.edu,Time and Place: Sunday, April 1, 2001, 9:30-11:00, Kalahari

Web-Based Support for a Holistic e-Learning Process, Judith Barlow and David D. Hott, both at Florida Institute of Technology, Melbourne, FL, jbarlow@fit.edu and dhott@fit.edu

There has been a proliferation of web-based courseware tools that can be used to support traditional classroom-based courses as well as distance learning programs. Web-based technologies offer many other opportunities for educators beyond providing classroom support. This paper describes how web-based technologies can be used to support a broader infrastructure for teaching and

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learning. In the School of Business at the Florida Institute of Technology, web-based tools are used to

Serve as a forum for the design of new information technology courses as well as the timely integration of technology into existing courses,

Gather data on student and faculty perceptions of their technical expertise, Distribute and process student evaluations of teaching effectiveness, Provide a self-documenting mechanism to support faculty discussion of academic

issues and policies, and Support distance learning as well as traditional on-campus courses.

We present opportunities and challenges encountered.

A Proposal for Restructuring Operation Management Classes Using Computer Mediated Teaching Techniques, Aldo Cosentino, Universidade Federal de Santa Catarina, CPGA/CSE, Florianopolis-SC, Brazil, ac@cse.ufsc.br, Rolf Hermann Erdmann, and Angelise Valladares Monteiro

The work has the object to establish a model of Computer Mediated Teaching for the Operations Management discipline at the Federal University of Santa Catarina, Brazil. To attain this objective, will be considered technical aspects relatives to teaching, theorethical/practical instruments as texts, exercises, case studies, and all instruments avaliable for Computer Mediated Teaching, like Internet research, Distance Learning, discussions within e-groups including Universities, Organizations and Manufacturers. Finally, a new approach will be discussed, including cultural, didatic and pedagogical aspects to be considered both for students and teachers, as necessary when Distance Learning is a part of the course.

A Virtual Classroom That Works!, Roberta Russell,Virginia Tech, Blacksburg, VA rrussell@vt.edu,

Can online teaching be truly interactive? Teaching online can make it difficult to know whether or not you are "reaching" your students. Net-based software such as Centra's Symposium can be used for case discussions, group presentations, exam reviews and "classroom" lectures. The symposium format is compared with video broadcasting and web-based instruction as mediums for content delivery.

Lessons Learned: Developing and Delivering A Web-Based POM Course, Kimberlee Snyder, Business Administration Department, SOM324C, Winona State University, Winona, MN, ksnyder@winona.msus.edu

Traditionally, education has incorporated many forms of technology to assist in its goal of transforming knowledge and understanding to a customer or client. The virtual explosion of Internet usage as a delivery tool for "eLearning" has pushed the concept and reality of on-line courses to the forefront. This paper presents insights and lessons learned on developing, delivering, and improving a web-based undergraduate productionand operations management course. Survey results administrated to students taking the course are also discussed.Rev 3-7-01

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SU-11-2 Session Title: Taking POM To New AudiencesSession Chair: Harry Rosen, Zicklin School of Business, Baruch College, CUNY, New York, NY, Harry_Rosen@baruch.cuny.edu Time and Place: Sunday, April 1, 2001, 2:00 - 3:30pm, Kalahari

Enhancing the Content and Delivery of a Distributed Graduate Transportation Management Program, Glenn G. Shephard, San Jose State University, San Jose, CA, shephard_g@cob.sjsu.edu

This project describes the ongoing experience of enhancing the existing Graduate Transportation Management Program’s distance learning curriculum to reflect the restrictions and opportunities provided by a technology-modified learning space. Targeted students are adult career-oriented working transportation professionals who demand and flourish in a highly interactive human learning space. Program courses are being delivered by distance learning in an accelerated format of ten four-hour night classes across an integrated broadcast/webcast network. Graduate teaching faculty enhance the curriculum by developing enriched, varied, web-based computer-mediated curriculum components for existing program courses aimed at transforming the once-a-week, classroom focused course learning experience into a continuous, course-long learning experience.

Teaching Service Operations Management As The Core OM Course: One Professors Experience, Britt Shirley, The University of Tampa, West Kennedy Boulevard, Tampa, FL, BMShirley@aol.com,

As the percentage of jobs in the service sector has grown, students' perceptions of the relevance of manufacturing-related topics has decreased. In an economy that is increasingly service-oriented, students and employers are demanding courses in operations management that are more tailored to their current and future needs. This paper examines one professor's experiences with converting the core OM course to a service operations management course. Specifically, emphasis is placed upon the challenges of changing the focus of the course, the opportunities created by the change, and the response of the students.

Designing an Operations Management Course To Simultaneously Meet Instructional and Research Objectives, Michael Haughton, Department of Management Studies, Faculty of Social Sciences, University of the West Indies – Mona Campus, Kingston, JAMAICA, W.I., mhaughtn@uwimona.edu.jm

Among an academic’s duties, teaching and research are often viewed as elements that are difficult to simultaneously optimize. This paper reports on an innovative design and delivery of an operations management (OM) course to aid simultaneous optimization. The course was part of a larger program to provide management training/development (MTD) for clinicians/physicians in some of Jamaica’s health care facilities. A key philosophy in the course design was that the assignments had to have pedagogical and research intent. The central pedagogical intent was to enhance the quality of the training by getting the clinicians/physicians to learn each OM concept by reflecting on and

Rev 3-7-0168

articulating (orally and in written reports) its characteristics within the health care facility they worked. The resulting findings concerning the attainment of the pedagogical objectives as well as the value of the written reports for OM research are presented.

From Production Management To Process Management: The Evolution Of An MBA Course for Non-Traditional Students, Tom Dulz, Frostburg State University, Frostburg , Maryland, dulz@hereintown.net

Non-traditional students have unique needs. For the most part, they are mature individuals who are already committed to a career path and demand relevancy. This paper describes the ten year evolution of an evening MBA course, driven by an ongoing dialogue with practicing managers, from a traditional text-based POM approach to a process management emphasis. The present course addresses four basic issues: 1) Purpose. Customers (both internal and external) and their requirements; 2) Activities. Flowcharting and issues of capacity and throughput; 3) Results. Monitoring, measurement and evaluation; 4) Diagnosis. Interpreting measures and understanding variation. Student and manager feedback has been very positive.

Teaching & Learning In A World Of Entrepreneurs, Luiz C. Scavarda do Carmo, Catholic University of Rio de Janeiro, Rio de Janeiro, Brazil, scavarda@vrd.puc-rio.br,Jose A. Pimenta-Bueno, Jose A. Aranha

The methodologies of Teaching & Learning used presently in Education, particularly in Higher Education, have been developed for an environment where most of the work force was placed in medium or large size enterprises or government. This paper discusses some of the necessary changes in the educational paradigm and those teaching methodologies that should be taken into consideration in order to address a new situation where (a) the growth of a knowledge based society depends critically on well educated entrepreneurs and (b) both large enterprise and government need intrapreneurs capable of developing knowledge and exploring opportunities based on new knowledge.

MO-11-1 Session Title: Computer Methods In Classroom InstructionsSession Chair: Mark D. Hanna, Department of Management, Miami University, Oxford, OH, hannamd@muohio.edu,Time and Place: Monday, April 2, 2001, 10:00 - 11:30am, Togo

Teaching Project Management with MS-Project: Resources And Suggestions, Mark D. Hanna, Department of Management, Miami University, Oxford, OH, hannamd@muohio.edu

Currently, Project Management is a part of the defined content of many basic Operations Management (OM) courses. However, many OM instructors have not learned to present the PM content using MS-Project even though the software has been available for several years. One root-cause of the slow penetration of project scheduling software is a lack of awareness among instructors. This presentation provides assistance for OM instructors who wish to consider using MS-Project software in their instruction by providing 1) an overview of the MS-Project software, and 2) a faculty guide to instructional uses of MS-Project including a range of possible assignments.

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BusSim Operations: An Operations Management Simulation/Case, David A. Jordan, Geneva College, Beaver Falls, PA, dajordan@geneva.edu

This session will summarize the development and use of an operations management computer simulation as utilized by the Business Department at Geneva College. This simulation seeks to model the decisions made by an operations manager of a small manufacturing business. Three different products are produced by the manufacturing facility. The student/teams are responsible for scheduling all the resources necessary to produce these products. Resources include: 1) workers, 2) raw materials, 3) stations, 4) fabrication areas, 5) assembly lines, 6) inventory and 7) finances. This session should assist you in assessing the benefits and role of simulation in your curricular design.

Using VBA And Excel To Teach POM, Roberta Russell,Virginia Tech, Blacksburg, VA rrussell@vt.edu

Using software to teach the quantitative aspects of POM presents several problems. If the software is too automated, the student does not learn the essence of the technique. If the student must construct the model from scratch, too much time is spent teaching how to program. This presentation illustrates some simple VBA tools that enable students to build powerful models quickly in Excel.

Spreadsheets and Simulations: Bringing Operations Management To Life In The Classroom, Nancy C. Weida, Department of Management, Bucknell University, Lewisburg, PA, nweida@bucknell.edu, Ronny Richardson and Andrew Vazsonyi

In order for students to appreciate the dynamic nature of operations management decision making, they need to experience it first hand. One way to do this is through the use of spreadsheet and simulation modeling. By so doing, we can make OM come alive for our students. In addition, the relevance of OM is made more clear to students by directly modeling the interdependence of such business functions as operations, finance, and marketing, using Excel's scenario management feature. This also allows students to see the effects of changes in assumptions, and the realities of particular decision-making situations.

MO-11-2 Session Title: Special Issues in POM LearningSession Chair: Emma Jane Riddle, Winthrop University, Rock Hill, SC, paradox@cetlink.net, Time and Place: Monday, April 2, 2001, 2:00 - 3:30pm, Togo

Teams In The Classroom: Learning, Accountability, And Stakeholder Impacts, Emma Jane Riddle, Winthrop University, Rock Hill, SC, paradox@cetlink.net

In the global business environment, success often depends on teamwork. To prepare students for this work environment, business faculty often include team projects in their courses. Both business leaders and faculty must decide how to ensure teamwork, participation, learning, and accountability. This paper (1) compares and contrasts traditional performance appraisals, used in business, with academic grading systems, Rev 3-7-01

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(2) contrasts the business work environment with the classroom work environment, (3) identifies stakeholders who use student grades for various purposes, and (4) recommends actions that faculty, colleges of business, and others can take to improve the use of teams in business courses.

The Internationalization of Engineering Education, Luiz C. Scavarda do Carmo, Catholic University of Rio de Janeiro, Rio de Janeiro, RJ; Brazil; with Frederico Palmeira and Jose A. Parise, scavarda@vrd.puc-rio.br,

The fast development of industrial processes that involve international production and serve international markets created the necessity of a new breed of professionals that are at ease with technical problems as much as with the perception of market opportunities and international operations. Engineering Education has been the first area of higher education that responded to the several changes on the production processes and markets. This paper analyses the present trend of internationalization of engineering education, including the intrinsically necessary deeper interaction with industries, the entrepreneurial trend of the birth of small, knowledge based enterprises, and mechanisms of double degrees.

Effects of the FPGAs On The Innovation: Teaching and Learning Experiences, Edward David Moreno, edmoreno@fundanet.br, and Maria Elena León Olave, melena@usp.br, both of the Euripides Foundation of Marilia, Marilia, S.P., Brazil

FPGA (Field Programmable Gate Arrays) represents a new paradigma to build and project digital systems. FPGAs can implement thousand of gates of logic in a single IC and it can be programmed by users at their site in a few seconds or less depending on the type device used and the applications and obviously of their creative experience. The cost is low and the development time is short. These advantages have made FPGAs very popular for prototype development and custom computing. This paper shows and discusses some experiences with undergraduate students at the Euripides Foundation of Marilia, Brazil. We show the big impact of that technology on the innovation process.

Track: JIT Manufacturing/Lean ProductionTrack Chair: Joel Wisner, UNLV, wisner@ccmail.nevada.edu

SU-12-1 Session Title: Services, Simulation, and the InternetSession Chair: Robert N. Mefford, University of San Francisco, mefford@usfca.eduSession Time and Place: Sunday, April 1, 2001, 9:30-11:00, Salon B

Document Automation In Service Operations: A Case Study, Brad Richcreek, Georgia College and State University, Jiaqin Yang, Georgia College & State University, jyang@mail.gcsu.edu This paper presents a case study about a new trend in the printing industry - “document automation”. The “document automation” can be viewed as an extended JIT (Just-In-Time) type production in printing operations - called “print-on-demand”. With the aid of

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new communication technology, this automation process starts from the customer-side and completes with the service delivery, including: project planning, cost estimation, job composition, graphic design, digital file conversion, disk creation, engineering drawing, publishing, hardcopy printing, binding, and lamination. This case study demonstrates that such a “document automation” can improve printing service operations significantly and represents the future for the printing service industry. Lean Production and the Internet, Robert Mefford, University of San Francisco,mefford@usfca.edu In this paper the implications of the Internet for lean production systems is explored. Does the World Wide Web facilitate the implementation of Just-in-Time production systems or, alternatively, can it serve as a substitute for it? The possible effects on the supply chain, production scheduling, procurement, layouts, inventories, and quality programs are some of the issues discussed in this paper. Also considered is the how JIT can be incorporated into B2B and B2C enterprises. Use of Discrete Simulation to Evaluate MRP and JIT Control Methods, Mario César Velez, Universidad EAFIT, marvelez@eafit.edu.co, Nicolas Jaramillo, Universidad EAFIT, nicoj@arquitierra.com, Carlos Tobón, Universidad EAFIT, datobon@epm.net.co, Sebastian Valencia, Universidad EAFIT, sebasv@geo.net.co  With the use of a discrete simulation software (ProModel) and a small confection process as a model controlled by MRP (Materials Requirements Planning) and JIT (Just in Time), we intend to make several variations such as changes in the capacity of the work centres, lead times, distribution routes, inventory policies, consumer demand, types of products, service levels, etc, in order to draw conclusions and suggestions to see which production control system is more suitable for the different situations.

SU-12-2 Session Title: Surveys and PracticesSession Chair: Angel Sánchez, Centro Politécnico Superior, anmarzan@posta.unizar.es, Session Time and Place: Sunday, April 1, 2001, 2:00-3:30, Salon B

Empirical Study of Group Cohesion in “Natural Work Groups” at Harley-Davidson Motor Company, Paul Swamidass, Auburn University, swamidas@auburn.edu, Phillip Chansler, Auburn University, chanspa@earthlink.net  This study of group cohesion is based on a survey of 233 employees at the Kansas City plant of Harley-Davidson Motor Company. Results show that employee control over team staffing, and perceived fairness were strong predictors of group cohesion. Pull Systems: Implementation Experience in American Manufacturing, Charles Standard, Maya Productivity Plus, maya@lean-mfg.com, Dale Davis, Maya Productivity Plus, maya@lean-mfg.com In the 1990s lean manufacturing became a common phrase in business literature. The underlying principles of lean manufacturing are well founded in operations management; however, lean is usually described as a collection of best practices. Among these best Rev 3-7-01

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practices is a production and inventory control technique known as pull. There is a surprising dearth of information about pull system implementation. Some researchers even suggest that “many manufacturers will never be able to implement pull. Nevertheless, when implemented properly, we have found pull systems to be a readily accepted lean practice that provides immediate and remarkable improvements in business performance. Lean Production and Technology Networking in the Automotive Supplier Industry, Manuela Pérez, Centro Politécnico Superior, manuela.perez@posta.unizar.es, Angel Sánchez, Centro Politécnico Superior,anmarzan@posta.unizar.esThe automotive industry has undergone tremendous transformation during the 1990s. One of them is the importance of knowledge-sharing networks to access to technology, innovation and training. Firms having a strong supplier network report higher levels of productivity and quality than those reporting weak alliances over time. However, very few empirical studies exist on the relationship between networking and production and process innovativeness. This paper tests the underlying relationship between lean production and networking. Using data from an automotive supplier network in northeast Spain, the empirical results found that networking companies did more in-house training and teamwork than non-networking suppliers. No significant relationship was found with Just-in-Time delivery. The paper also compares the training needs and expectations of three automotive supplier networks, two in Spain and one in the United Kingdom to test the relationship between learning and networking.

A Study of the Flyer Advertising Affect When Utilizing TMS-S at Toyota, Kakuro Amasaka, Aoyama Gakuin University, kakuro_amasaka@ise.aoyama.ac.jp In recent years, the concept of JIT is getting more comprehensive atToyota. It's going beyond a philosophy to streamline production operations to improve quality, cost and delivery. The author has worked on the development of New JIT. One principle the author has advocated for the development is to enhance TQM activities by linking three core-systems (Toyota Marketing Systems, Toyota Development Systems and Toyota Production Systems) for sustaining Toyota as an eternal supply system, under a new discipline of Customer Science with adoption Science SQC. One important aspect, the author is recognizing is sales activities. In this paper, the author is going to show an effective improvement in the mode of sales operations when the Toyota marketing system is approached by Science SQC. Innovating dealers' operations has strategic effects onautomobile sales activities. Renovated Toyota Marketing Systems, TMS supported by Science SQC, is a next generation of TMS, called TMS-S. It will be a key to promoting New JIT. In this study, one example of TMS-S is presented. It is concerned with the effectiveness of flyer advertising contributing to automobile sales activities of dealers by way of the attraction of customers in Japan. The paper will show what Science SQC means and how it works to shape a new TMS-S, which leads to New JIT.

SU-12-3 Session Title: Modeling ApproachesSession Chair: Urban Wemmerlov, University of Wisconsin-Madison, uwemmerlov@bus.wisc.edu

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Session Time and Place: Sunday, April 1, 2001, 4:00-5:30, Salon B Two Moment Approximations for Fork/Join Stations with Applications to Modeling Kanban Systems, Ananth Krishnamurthy, University of Wisconsin-Madison, akrishna@cae.wisc.edu, Rajan Suri, University of Wisconsin-Madison, suri@engr.wisc.edu, Mary Vernon, University of Wisconsin-Madison, vernon@cs.wisc.eduIn queuing models of kanban control systems, fork/join stations are typically used to model the synchronization constraints between parts and kanban cards. Efficient analysis of these fork/join stations can be quite crucial to developing techniques for analytical performance evaluation of kanban systems. However, exact analysis of the traffic processes at the fork/join station can be difficult especially if the input processes have general characteristics. We propose a new method for the approximate analysis of the performance of such fork/join stations. Using two moment approximations of the input processes, we study the underlying queue length and departure processes. We develop analytical methods to estimate the throughput, waiting time and queue lengths. We compare our results to simulation for a variety of settings. Deconstructing Cellular Manufacturing – A Cause-Effect Model, Nancy Hyer, Vanderbilt University, hyernl@ctrvax.vanderbilt.edu, Urban Wemmerlöv, University of Wisconsin-Madison, uwemmerlov@bus.wisc.edu Cellular manufacturing (CM) has been linked to outcomes such as reduced lead times, lower costs, and higher quality. By why and how does CM bring about these results? We map the underlying benefit sources for CM using a framework of four perspectives that each highlights a critical dimension of CM. We then link these perspectives to the primary time-quality-cost benefits, either directly or indirectly (i.e., through intermediate benefit sources). The resulting models suggest that CM can potentially create a multitude of secondary benefits. We also show that these secondary benefits will not translate into primary benefits unless CM is purposefully managed. A Lean Enterprise Framework for the UK Aerospace Sector, Vic Gilgeous, University of Nottingham, vic.gilgeous@nottingham.ac.uk, Nabil Gindy, University of Nottingham, nabil.gindy@nottingham.ac.uk, Andrew Heap, University of Nottingham, andrew.heap@nottingham.ac.uk, Adriana Nunez The paper presents a Lean Enterprise Framework (LEF) for implementing lean practices in SBAC (Society of British Aerospace Companies) companies. The impetus behind this comes from the UK Lean Aerospace Initiative (UK LAI), a joint research programme between ESPRC, SBAC and a consortium of UK universities (Bath, Cranfield, Nottingham and Warwick). Through a series of workshops and interviews with 29 SBAC member companies, the LEF framework was developed. It allows management to identify and explore the key processes through which leanness can be realised. For each process a set of performance metrics are provided and a catalogue of the relevant tools and approaches are proposed. MO-12-1 Session Title: Manufacturing Case Studies

Session Chair: Robert Conti, Bryant College, rconti@bryant.edu

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Session Time and Place: Monday, April 2, 2001, 10:00-11:30, Executive Suite 1

 The Transfer of Lean Manufacturing Principles from Automobiles to the Aerospace Industry, Steve Brown, Unviversity of Bath, mnsseb@management.bath.ac.uk Many publications since the 1990s have emphasized the need for manufacturing capabilities to be Lean. Much of the research has concentrated on high-volume sectors such as automobiles and high tech industries. However, as Womack et al (1990) predicted, lean manufacturing has begun to spread from the automobile industry to other sectors. The research for this paper will demonstrate that although concepts of lean production can be put into practice, the parameters and criteria for measurements of success with lean production need to be sector specific. We will provide case material from the aerospace industry and discuss how plant-specific manufacturing strategies need to be in place to enable firms to achieve lean capabilities in sectors other than high volume manufacturing. Internal Plant Environment and Just-in-Time Manufacturing, Ron McLachlin, University of Manitoba, mclachl@ms.umanitoba.ca This paper considers the implementation of just-in-time manufacturing in relation to aspects of the internal plant environment. A case-based research methodology was employed using data from six plants, each which claimed to be engaged in just-in-time approaches to manufacturing. The data were both qualitative and quantitative, obtained mainly via interviews and questionnaires. The results support propositions that a more complete implementation of just-in-time manufacturing is associated with a clan-like plant culture (comprised of low power distance, collectivism, and cultural congruence), with employee influence over day-to-day work, and with good employee-management relations. The best and worst JIT plants highlight these results. Lean Manufacturing Against Taiichi Ohno's Seven Wastes, Sergio Lessa De Gusmão, Pontifícia Universidade Católica do Rio Grande do Sul, slgusmao@nutecnet.com.brThis article presents a case study on the implantation of Lean Manufacturing concepts in an industry of the section mechanical metal located in the state of Rio Grande do Sul, in the south of Brazil, where the typology of Taiichi Ohno's seven wastes was used as support for the development of whole a change process seeking to increase the competitiveness of the company. Initially, it is made an abbreviation explanation of Lean Manufacturing concepts and the seven wastes of Ohno and later are presented the main results obtained in the process of effective changes in the company. A Taxonomy of Cellular Assembly Barriers, Robert Conti, Bryant College, rconti@bryant.edu The paper describes several case studies in a variety of JIT / Lean Production plants. They illustrate difficulties experienced in the implementation of team-based cellular production. Analysis of the cases reveals six types of potential barriers to this form of production:1. Restrictive union work rules, 2. Undesirable emergent behavior (excessive talking), 3. Free rider effect, 4. Creeping complexity, 5. Mismatch with compensation Rev 3-7-01

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culture, 6. Elevated job stress levels. Each barrier is discussed and possible solutions offered. While the barriers are based on a small anecdotal sample they do provide a useful input to cellular design and can be the basis for an empirical study of their frequency and severity.  

Track: Logistics and Distribution

Track Chair: Alan J. Stenger, The Smeal College of Business Administration, Penn State University, University Park, PA 16802 ajs@psu.edu

MO-13-2-1 Session Title: The Logistics of New Business ModelsSession Chair: Kiran J. Desai, University of Memphis, kdesai@memphis.edu Session Time and Place: Monday, April 2, 2001, 2:00-3:30, Sudan

Supply Chain: Strategic Evaluation of Goods Delivery System for E-Commerce, A Simulation Study, Kiran J. Desai and Vernon Lewis, Fogelman College of Business and Economics, University of Memphis, Memphis, TN 38152, kdesai@memphis.edu

E-business is becoming a larger part of US economy. E-retailing is particularly visible. As this new retail landscape evolves, so too will the systemfor delivering products to end consumers. This study explores the strategy ofproduct delivery to customers by examining the consolidation sites, merge-in transit and drop shipments and their combination from single or multiple supplies to minimize total cost at the same time maintaining the customer service level. Factors examined are demand intensity, by supply sources and relative costs of shipping. Performance measurement examined was total cost, and delivery time.

From Mass Production to Mass Customization – An Easy Model of How to Adopt Production and Logistics, Ralph Seelmann-Eggebert and Rico Wojanski, Fraunhofer Institute IFF, PO Box 14 49, 39004 Magdeburg, Germany, seelmann@iff.fhg.de

Mass Customization as a marketing strategy has rapidly become unavoidable for the strategic development of many enterprises. But still Mass Customization is not yet a world wide standard. Despite of the economical advantages this hesitation originates in the complex implementation of Mass Customization in actual existing mass or serial productions. Pioneer examples often focus on start-ups or exclusively set up production lines. For the implementation in existing productions or co-used production lines no standard solution is or can be offered since products, Rev 3-7-01

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productions and logistic systems have grown individually. Thus questions like which product to which extend should or could be individualized remain. In addition delivery-time becomes an even more crucial factor than it has been before. Logistic systems have to be redesigned in order to face the new challenges. Long transport times have to be reduced inside and between production lines along the entire Supply Chain. Lot size 1 in the machine does not imply lot size 1 in transport. Both information and goods have to be controlled and steered in order to be at the right time at the right place. This paper will show that correctly done logistics becomes the key enabler for Mass Customization in the enterprise and thus the factor for sustainable market growth.

Incentive Mechanisms and Supply Chain Design for Quick Response, Diwakar Gupta and Warenessara Weerawat, University of Minnesota, Department of Mechanical Engineering, 111 Church Street, S.E., Minneapolis, MN 55455, guptad@me.umn.edu

Manufacture and/or assemble-to-order is an increasingly popular strategy to win customers in commodity electronics and other similar markets where many different product configurations can be produced by mixing and matching standard components. To succeed in this environment, the assembler-manufacturers need to keep their costs and order fulfillment times low. In this article, we study three different mechanisms that an assembler-manufacturer, whose revenues depend on order delays, can use to induce its components supplier to keep the economically appropriate level of components inventory, i.e., at the level which maximizes overall supply chain profits. These are: specifying components inventory level, offering a share of earned revenues to supplier, and offering a two-part revenue sharing scheme. We show that whereas the first two approaches do not lead to supply chain coordination, the two-part scheme does. The two-part scheme is not unique. There is a continuum of such contracts, any one of which could be chosen depending on the bargaining power of each party. We report results from several numerical experiments which suggest that up to a point, the components supplier benefits from choosing a high utilization of its production facilities, whereas the assembler manufacturer benefits from having excess production capacity.

MO-13-2-2 Session Title: Changing Roles of Retailers, Distributors, and Third Party Logistics Providers in the Supply ChainSession Chair: Edie Schmidt, Purdue University, ekschmidt@tech.purdue.edu Session Time and Place: Monday, April 2, 2001, 2:00-3:30, Sahara

Improvements in Customer Service: A Longitudinal Study in the Distribution on Grocery Products in Brazil, Kleber F. Figueiredo, Rebecca Arkader, Cesar LaValle, and Maria Fernanda Hijjar, The COPPEAD Graduate School of Business, Federal

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University of Rio de Janeiro, Caixa Postal 68514, CEP 21949-900, Rio de Janeiro, Brazil, Rebecca@coppead.ufrj.br

Based on longitudinal results from surveys with grocery retailers in major cities in Brazil during the 1995-1999 period, the paper shows the evolution ofselected customer service performance indicators in the distribution of grocery products, such as cycle time, delivery frequency, proportion deliveredof the total order, and orders resulting in customer complaints. Tests were conducted for the hypotheses of increasing improvement in performance and of decreasing gaps between retailer service expectations and supplier distribution performance, due to the adoption of up-to-date logistics practices as a response to structural and competitive changes in the market.

Changing Role in Distribution, Edie Schmidt, Department of Industrial Technology, Purdue University, 1416 Knoy Hall, West Lafayette, IN 47907-1416, ekschmidt@tech.purdue.edu

The introduction of technological advances has affected distributors and manufacturers alike. One key effect of these technological advances (including e-commerce) is the management of expectations between channel members. In fact, addressing the shifting boundaries in the channels affects the perceptions about distributor roles, profitability, efficiency and sharing of information. The purpose of this paper is to identify the current perceptions among channel members on who is responsible for what in this rapidly changing environment. We describe the survey instrument, and identify the key areas of concerns regarding expectations of their suppliers, customers and changing roles due to technological advances.

The Developing Role of Third Party Logistics Providers in Logistics Systems and Their Impact on Logistics Performance, Otto Jockel, Centre for Logistics and Transport, Cranfield, Bedfordshire, MK 43 0TF – United Kingdom, O.Jockel@cranfield.ac.uk

Economic integration, technological change, the globalisation of businessesand the adoption of new management principles has led to a re-evaluation of the attitude towards vertical integration, and increased outsourcing of logistical activities to Third Party Logistics providers. This paper is based on the results of face-to-face interviews with 50 European shippers and 35 leading European Third Party Logistics (TPL) providers that has recently been undertaken by Cranfield University as leading partner of a research consortium on behalf of the European Commission. The study explores the skills and resources that are deployed into the design, implementation and operational processes of logistics systems in 4 different industries and their influence on logistics performance. With a particular focus on Third Party resources and skills a link is made to the developing contribution of TPL providers to logistics performance. The study reveals a growing strategic importance of Third Party Logistics services and the importance of the early involvement Third Party Logistics providers to achieve a better logistics Rev 3-7-01

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performance. Furthermore the study verifies the use of concepts rooted in Resources Based Theory to examine the outcome of logistics processes.

MO-13-3-1 Session Title: Improving Logistics and Supply Chain PerformanceSession Chair: Phil Evers, University of Maryland, pevers@rhsmith.umd.eduSession Time and Place: Monday, April 2, 2001, 4:00-5:30, Sudan

Improving Supply Chain Operations Performance, Bernardo Villarreal and Veronica A. Tapia, Universidad de Monterrey, Monterrey, Mexico, bvillarreal@udem.edu.mx

The intense competitive environment which characterizes manyindustry sectors is forcing many firms to look for diverse strategies toimprove their performance and customer satisfaction. At first, thesestrategies focused in improving each company’s internal operations, bringing them to higher performance levels. Today this is not enough. It is becomingrecognized that to stay competitive, companies need to look for improvementopportunities available due to the integration and excellent management ofthe supply chain to which they belong. The project presented deals withdefining and implementing an improvement program of the supply chain ofglass products for a Mexican firm located in Monterrey, Mexico.The purpose of the program is to increase customer satisfaction at lowerinventory levels. This on-going program consists in the implementation ofseveral projects among which the centralization of end product inventories,improving forecasting precision, promoting alliances with distributors andredefining its commercial product catalog stand out. The report presents asummary of the evolution of the program, a description of the potentialbenefits and the current status of the efforts.

Improving the Operational Efficiencies of a Food Supply Chain—A Case Study, Mohan Gopalakrishnan, Srimathy Mohan, and Phil Mizzi, School of Management, Arizona State University West, MC 2451, 4701 West Thunderbird Road, P.O. Box 37100, Phoenix, AZ 85069-7100, MOHAN@ASU.EDU

This paper presents a case study of a not-for-profit organization involved in feeding the food insecure. The focus of the study is on the food supply chain, which receives food from donors like grocery chains. The organization reclaims, packages and stores the food in a warehouse, and distributes it to the needy through a network, including food banks. Specifically, we present the operational issues in this supply chain and ways to improve the efficiency of the supply chain. We discuss in detail the needs analysis process, food reclamation process in the warehouse and the food distribution process.

Application of Inventory Pooling Models to Product Substitution, Phil Evers and Rahul Kale, Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, pevers@rhsmith.umd.edu Rev 3-7-01

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A customer wishing to purchase one brand of, say, photo film purchases another brand instead because the former is out of stock. This common reaction, referred to as product substitution, has received considerable research attention. A second research stream has addressed various pooling issues related to inventory consolidation. Starting with the square root law, this research investigates the statistical economies of scale arisingfrom the consolidation of stocking locations, either physically or virtually. Thepurpose of this research is to examine the application of inventory consolidation models to the context of product substitution. Implications of these models will be identified.

A Study of a Multi-Objective Cargo Container Loading Problem, Yue Wu, K. K. Lai, and Stephen Leung, Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong, mswuyue@cityu.edu.hk

This study is inspired by a problem facing a multinational company, which has an operation of containerizing their cargoes. The company daily faces the problem of determining the types and number of containers to be rented and how to pack customer cargoes into containers. In this study, we use a goal-programming model to formulate the problem with three objectives, which minimizing the corresponding deviation representing the numeric distance between the optimal solution and target value. The model is solved by LINDO system. Tests on a real situation that the company is actually facing demonstrate some interesting characteristics for the problem.

MO-13-3-2 Session Title: Information Technology in Logistics and Supply Chain ManagementSession Chair: Nada R. Sanders, Wright State University, nadia.sanders@wright.edu Session Time and Place: Monday, April 2, 2001, 4:00-5:30, Sahara

IT Applications in Supply Chain Organizations: A Link Between Competitive Priorities and Organizational Benefits, Robert Premus and Nada R. Sanders, 271 Rike Hall, MS & IS, Wright State University, Dayton, OH 45435, nadia.sanders@wright.edu

Information technology (IT) is the backbone of supply chain management (SCM), serving as an essential enabler of SCM activities. Research to date has shown that IT has the overall potential of providing a significant competitive advantage to firms. However, decisions relative to adoption of specific IT applications should not be made without alignment with the organization’s competitive priorities. We postulate that technologically sophisticated companies focus on a specific set of competitive priorities, different from their less technologically sophisticated counterparts. Further, we assume some degree of alignment between these priorities, the specificIT applications used by these firms, and the measurable benefits achieved. Using this framework, a survey instrument was used to profile the Rev 3-7-01

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organizational differences between firms based on level of technological sophistication. Specifically, we evaluate the types of competitive priorities favored by technologically sophisticated firms, IT applications used, focusingon supply chain technologies, and specific performance measures achieved. Our study links specific performance measures to the firms’ use of SCM technology.

Integrating SWOT, QFD, and AHP for Information Systems Innovation, Kwoting Fang, Department of Information Management, National Yunlin University of Science and Technology, 123 University Road, Section 3, Touliu, Yunlin 640, fangkt@mis4k.mis.yuntech.edu.tw

Due to the dynamic and competitive nature of business environment, in terms with advancement of information technology (IT), management must not only evaluate the performance of the IT investments, but also monitor the alignment of business goals or strategies with IT and their potential impacts on competitive edges. A systematic method is proposed based on integrating strategic planning (SWOT), Quality Function Deployment (QFD) and Analytic Hierarchy Process (AHP) for information systems innovation with limited budget. Also, The “TYLC Distribution Center Corp.”, served as an example, was testified the integrated methodology and feasibility of decision model.

Business Game on Reverse Logistics, Michael Schenk, Ralph Seelmann-Eggebert, Rico Wojanski, and Carlos Jahn, Fraunhofer Institute IFF, PO Box 14 49, 39004 Magdeburg, Germany, seelmann@iff.fhg.de

From the past it is known that many improvement concepts, although theoretically examined, fail in practice due to a lack of team support . To deal with this problem, the presented management game can be appointed as an effective didactic instrument. In effortless contacts with abstract models ofthe company's reality, the team can identify complex relations and can overcome the company's blindness. In this way, experiences that usually need years of specialisation or could never be originated in the daily routine, can often be collected in a couple of hours.

The most important logistic functions in an enterprise are present in an understandable way. The special focus of this game is on Reverse logistics.The entire logistic chain of any normal enterprise including the recycling partis integrated in the game. For the first time the process cycle is truly entire. Objects of the game are the gradual transforming of the given production/recycling organisation by suitable situation measures and measure combination. The measures are compiled by the users in moderated group discussions. Using the factors "costs" and "time" the business game shows the effects from stocks, illustrates the meaningful sequence of logistic measures and their effects, presents the company's planning cycles and demonstrates to the participants the necessity of a market orientated and cross-divisional thinking.

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Track: OM in Entrepreneurship

Track Chair: Gordon Hopkins, FIU, Miami, gordon@eng.fiu.edu

MO-14-3 Session Title: OM in Entrepreneurship Session Chair: TBDSession Time and Location: Monday, April 2, 2001, 4:00-5:30, Executive Suite 1

Adaptation by Small Organizations to Changes in the Nature of Competitive Advantage as E-Commerce Becomes Primary Interface, A. Kimbrough Sherman, Loyola College, Baltimore, MD 21210, aks@loyola.edu

The rapid development of e-commerce as the primary interface between providers and their customers, both business and consumer, has brought challenges to small manufacturing and services and not-for-profit providers.

This presentation will examine the adaptation of three small organizations through these changes. The organizations include a small ski manufacturer,a paratransit provider, and an office supply purchasing service. Each will be analyzed in terms of the countervailing effects of web technology on their ability to provide individualized service and/or human touch and their ability to compete with larger providers of the same products (goods and/or services).

The Entrepreneurial Engine, Ann Gray, agray@hbs.edu, and Gary Burchill, Center for the Quality of Management, Gary_Burchill@cqm.org

We present results of a planning process designed to help firms become more entrepreneurial. From the abundance of new opportunities available today, managers must quickly screen out those that do not fit with strategic and financial objectives, and then develop a plan for effectively pursuing the best new products, services, or entire new businesses. The plan must target the unknowns and assumptions that must hold true for the opportunity to be worthwhile, and must dynamically respond to new knowledge created in the development process. A methodology incorporating these entrepreneurial features has been successfully implemented in several organizations.

An Investigation into Alliance Formation Involving Entrepreneurial Technology Firms, Hamieda Parker, Wolfson College, Oxford University, Oxford, OX2 6UD, hamiedap@gsb2.uct.ac.za

This study investigates alliances aimed at new product development involving technology based entrepreneurial firms. Researchers have suggested that entrepreneurial firms attempting to commercialize new technologies, have realized significant benefits through engaging in cooperative alliances, and that the innovation output of a startup firm is positively correlated with the number of cooperative alliances it has engaged in. There is however growing evidence, which highlights the negative consequences of alliances and the heightened risks that young, small firms face. This study examines the role of the Rev 3-7-01

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entrepreneur in alliance management and the link between alliance formation and an entrepreneurial firm’s ability to access resources.

Track: Operations Planning, Scheduling, and Control

Track Chairs: Suresh P. Sethi and Chelliah Sriskandarajah

SA-16-1-1 Session Title: Production and Maintenance ControlSession Chair: Viliam Makis, University of Toronto, makis@mie.utoronto.caSession Time and Location: Saturday, March 31, 2001, 10:45-12:15, Morocco

State and Parameter Estimation for a Partially Observable System Subject to Random Failure, Daming Lin, CBM Laboratory, Department of Mechanical and Industrial Engineering, University of Toronto, 5 King’s College Road, Toronto, Ontario M5S 3G8, Canada, dlin@mie.utoronto.ca, Viliam Makis, Department of Mechanical and Industrial Engineering, University of Toronto, 5 King’s College Road, Toronto, Ontario M5S 3G8, Canada, makis@mie.utoronto.ca, Andrew K.S. Jardine, Department of Mechanical and Industrial Engineering, University of Toronto, 5 King’s College Road, Toronto, Ontario M5S 3G8, Canada, jardine@mie.utoronto.ca

We consider a partially observable system subject to random failure. The system is monitored at equidistant points of time and the information obtained is stochastically related to the system’s state which is unobservable, except the failure state. By combining the failure information and the information obtained through condition monitoring and applying the change of measure method, we derive recursive filters and develop a procedure for parameter estimation based on the EM algorithm. The procedure is tested using a real data set.

Optimizing Equipment Maintenance Decisions, Andrew K.S. Jardine, Department of Mechanical and Industrial Engineering, University of Toronto, 5 King’s College Road, Toronto, Ontario M5S 3G8, Canada, jardine@mie.utoronto.ca

There is an increasing use of condition monitoring to establish the health of equipment. The desire is always to make “smart” maintenance decisions through interpretation of the signals emanating from the monitoring process – such as vibration monitoring or oil analysis. The presentation will review the approaches of using engineering models; expert systems; SQC models; neural networks and optimization models. The focus of the presentation will be on optimization models that blend risk estimation, using a proportional hazards model, with economic considerations to establish the best preventive maintenance plan. Applications of the optimization approach within several major corporations will be outlined.

The Optimal Service Policies in an M/G/1 Queuing System with the Possibility of a Variety of Vacation Jobs Being Available, Ernie Love, Faculty of Business Administration, Simon Fraser University, Burnaby, British Columbia V5A 1S6, Canada, love@sfu.ca, Zhe G. Zhang, College of Business and Economics, Western Washington University, Bellingham, Washington, USA, Yu Song, Fukakowa Institute of Technology,Rev 3-7-01

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Fukakowa, Japan

We consider a single server queuing system in which the server can choose one of several types of vacation jobs to take when he finishes serving all customers in the system. Job type i is available with probability p (i). The cost structure consists of a constant waiting cost rate, fixed costs for restarting production and reward rates for taking up vacation jobs. It is shown that this infinite buffer queuing system can be formulated as a finite state semi-Markov decision process (SMDP). With this finite state model, we can determine the optimal service policy to minimize the long-term average cost of such a system. Numerical examples are presented in this study.

An Integrated Model for Inventory, Quality and Maintenance, Abdur Rahim, Faculty of Administration, University of New Brunswick, P.O. Box 4400 Fredericton, New Brunswick E3B 5A3, Canada, rahim@unb.ca

An integrated model for the joint determination of the economic production quantity, the economic design of control charts, and the optimal maintenance level will be presented. A deteriorating process where in-control period follows a general probability distribution with increasing hazard rate will be considered. It will be shown that preventive maintenance activities reduce the shift rate to the out-of-control state proportional to the level of periodic maintenance, and non-uniform inspection schemes are more economical than the uniform inspection schemes.

Optimal Control Policy for a Deteriorating Production Process, Viliam Makis, Department of Mechanical and Industrial Engineering, University of Toronto, 5 King’s College Road, Toronto, Ontario M5S 3G8, Canada, makis@mie.utoronto.ca, Jiangbin Yang, Broadband Networks Lab, Dept. of Systems & Computer Engineering, Carleton University, Ottawa, Ontario K1S 5B6, Canada, yang@sce.carleton.ca

We consider a production process subject to a deterministic drift and random shocks. The process mean is a function of the initial setting and the accumulated deterioration, which is observable. The objective is to find the initial setting of the process mean and the resetting time that minimizes the expected average cost per unit time. It is shown that the optimal policy is of a control limit type. An algorithm for finding the optimal control parameters is presented.

SA-16-1-2 Session Title: Models and Methods for Operations SystemsSession Chair: Shailesh Kulkarni, University of North Texas, kulkarni@unt.eduSession Time and Location: Saturday, March 31, 2001, 10:45-12:15, Executive Suite 1

Task and Workflow Clarity and Within and Between Worker Variability in Performance, Kenneth Doerr, Department of Management, School of Business,University of Miami, Coral Gables, Florida 33124, USA, kdoerr@exchange.sba.miami.edu, Xiaohua (Tracy) Zhou, Department of Management, School of Business, University of Miami, Coral Gables, Florida 33124, USA, Chester A. Schriesheim, Department of Management, School of Business, University of Miami, Rev 3-7-01

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Coral Gables, Florida 33124, Tali Freed, Department of Management, School of Business, University of Miami, Coral Gables, Florida 33124, USA, Terence R. Mitchell, Department of Management, University of Washington, School of Business, Mackenzie Hall, Seattle, Washington 98195-3200, USA trm@u.washington.edu

In a laboratory experiment, the levels of between worker differences (worker heterogeneity) and within-worker variability were measured under varying conditions of perceived task and workflow clarity.  The results indicate that the design of work-flow can affect not only the mean but the standard deviation of individual work rates, and change the way individual effort is translated into group output.  Implications of these results for model-building and policy-making are discussed.

Determining the Optimal Amount and Location of Inventory in a Two-Stage Supply Chain, Jishnu Hazra, Faculty Block Production and Operations Area, Indian Institute of Management, Bannerghatta Road, Bangalore 560076, India, hazra@iimb.ernet.in, Peruvemba S. Ravi, School of Business and Economics, Wilfrid Laurier University, Waterloo, Canada N2L 3C5, pravi@wlu.ca,

Consider a supply chain consisting of a manufacturer and a distributor. The manufacturer has limited production capacity. The distributor faces random discrete demand with a known probability mass function. Demand that cannot be fulfilled is backordered, up to a certain upper limit. There are bounds on the levels of work-in-process and finished goods inventory. The supply chain functions in a completely coordinated manner. Every period, the following decisions are made: whether to release a production order, the size of the order, whether to ship goods from the manufacturer to the distributor, and the size of the shipment. The objective is to minimize the sum of the following cost components – inventory holding costs at the factory and distribution center, backorder costs at the distribution center, the fixed cost associated with releasing a production order, and the fixed cost associated with a shipment. The model provides insight into the impact of various parameters on the optimal amount and location of inventory in a two-stage supply chain.

The Implication of the Planning Environment on the Success of Manufacturing Planning and Control Methods, Patrik Jonsson, Department in Logistics and Marketing, School of Management and Economics, Växjö University, SE-351 95 Växjö, Sweden, patrik.jonsson@ehv.vxu.se

The applicability of manufacturing planning and control methods depends on the circumstances in the planning environment (e.g. product complexity, level of refinement of the product when order entry, customer order characteristics, production process, shop-floor layout, batch sizes, lead times, delivery times). The paper explains the success of methods for materials and capacity planning on the detailed material planning (e.g. MRP, ROP, Kanban, CRP) and shop-floor planning levels (e.g. infinite/finite, input-output, dispatch lists). The study is based on a survey of 83 Swedish manufacturing companies. Results show what methods are considered useful and successful in various planning environments, and how respective method is used when considered successful.

On the Stochastic Bottleneck Assignment Problem, Ching-Chung Kuo, Department of Management, College of Business Administration, University of North Texas, Denton, Rev 3-7-01

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TX 76203, USA, KuoC@cobaf.coba.unt.edu, Shailesh Kulkarni, BCIS Department, College of Business Administration, Box 305249, University of North Texas, Denton, TX 76203-5249, USA, kulkarni@unt.edu

The bottleneck assignment problem (BAP) is concerned with minimizing the longest processing time when jobs are assigned to machines. Due to its widespread practical applications, the BAP has been studied extensively and several solution approaches have been developed. The purpose of this paper is to consider a stochastic version of the problem. In particular, a procedure for minimizing the likelihood that the longest processing time is greater than a predetermined value in this stochastic bottleneck assignment problem (SBAP) will be proposed.

SA-16-2-1 Session Title: Design And Operational Issues in Maritime Container TerminalsSessionChair: Ardavan Asef-Vaziri, Marquette University, ardavan.asef-vaziri@mu.edu Session Time and Location: Saturday, March 31, 2001, 2:00-3:30, Morocco

Critical Issues Facing the Maritime and Port Industry, Gerhardt Muller, Merchant Marine Academy, King Point, NY, USA

The maritime industry, especially marine terminal activities, does now and will continue to change in terms of the how cargo moves through those terminals, especially containers and other forms of inter-modal equipment in a "seamless" manner. To do that will require a better understanding and application of the so-called "forces of change" such as globalization, new and emerging business concepts and technologies, and continued deregulation/re-regulation. To manage this also will require a more thoroughly educated and trained workforce, both decision makers and technical operators, a challenge that is only now beginning to be recognized as one of the more critical issues facing the maritime and port industry.

Managing Import Containers in Marine Terminals using Intelligent Transportation Systems (ITS) Technologies, Elizabeth G. Jones, Civil Engineering, University of Nebraska-Lincoln, 203E Peter Kiewit Institute Building, 1110 South 67th Street, Omaha, NE 68182-0178, USA, ejones@unl.edu or egjones@unomaha.edu, C. Michael Walton, Civil Engineering, The University of Texas at Austin, ECJ Hall, Suite 6.300, Austin, TX 78712, USA, cmwalton@mail.utexas.edu

Marine terminals explicitly organize export containers to help minimize time ships spend at the terminal unloading and loading containers. Import containers, however, are not explicitly ordered by marine terminal operators. This paper presents results from a detailed simulation of container handling operations in a marine terminal that show how import container management can be improved through the use of ITS technologies. Specifically, we investigate how more accurate and timely information about the departure times of import containers can be used to more efficiently and effectively storeimport containers in a marine terminal.

Rev 3-7-0186

Potential of Artificial Intelligence Techniques & Simulation in Improving Container Terminal Performance, Agostino G. Bruzzone, DIP University of Genoa, Via Opera Pia 15, 16145 Genova, Italy, agostino@itim.unige.it, Pietro Giribone, DIP University of Genoa, Via Opera Pia 15, 16145 Genova, Italy, pietro@itim.unige.it, Roberto Revetria, DIP University of Genoa, Via Opera Pia 15, 16145 Genova, Italy, revetria@itim.unige.it

The paper proposes several application examples where different integration of Artificial Intelligence and Simulation in order to support management of Container terminals with emphasis on the development process and operative results; the examples include a container yard cluster allocation and dock planner driven by Genetic Algorithms that it is integrated with a simulator for estimating the solution fitness. Another example is based on a smart supervisor for trailers management between the dock and the yard; the results obtained are compared with traditional techniques in term of overall efficiency (i.e. ship unloading time).

A Crane-Constrained Scheduling Problem in a Container Terminal, Ebru K. Bish, Department of Industrial and Systems Engineering, Virginia Tech, Blacksburg, VA 24061-0118, USA, ebru@vt.edu

We consider a container terminal loading and unloading containers to and from a set of ships and storing the containers in the terminal yard. Containers are moved between the ships and the yard using a fleet of vehicles, each with unit capacity. The problem is to determine a storage location for each unloaded container, and to dispatch vehicles to containers so as to minimize the maximum time it takes to serve a given set of ships. The problem is NP-hard. Therefore, we develop a heuristic algorithm and analyze its effectiveness from both worst-case and computational points of view.

Automated Material Handling in Maritime Container Terminal, Ardavan Asef-Vaziri, Straz Hall 212, College of Business Administration, Marquette University,Milwaukee, WI, 53201-1881, USA, ardavan.asef-vaziri@mu.edu , Berok Khoshnevis, University of Southern California, khoshnev@usc.edu , Petros Ioannou, University of Southern California, ioannou@usc.edu

The purpose of this article is to analyze the impact of instituting Automated Storage and Retrieval Systems (AS/RS) and Automated Guided Vehicles (AGVS) on the operations of a prototype maritime container terminal. Three key-variables of throughput, space utilization, and equipment utilization are defined for performance analysis. A 3D simulation model is developed to measure the effectiveness of the proposed total system and compare it with existing practices. Issues of facilities planning, network design, and fleet sizing are addressed.

SA-16-2-2 Session Title: Scheduling ProblemsSession Chair: Jeffrey B. Sidney, University of Ottawa, sidney@admin.uottawa.caSession Time and Location: Saturday, March 31, 2001, 2:00-3:30, Executive Suite 1

Rev 3-7-0187

Scheduling Multiple Parts in Two-Machine Dual Gripper Robot Cells: Heuristic Algorithm and Performance Guarantee, Inna Drobouchevitch, Department of Automated, Scheduling, Optimisation and Planning Research Group, University of Nottingham, Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB, UK, innadro@hotmail.com, Suresh P. Sethi, School of Management, JO47, The University of Texas at Dallas, 2601 N. Floyd Rd., Richardson, TX 75248, USA, sethi@utdallas.edu, Jeffrey B. Sidney, Faculty of Administration, University of Ottawa, Ottawa, Ontario K1N 6N5, Canada, sidney@admin.uottawa.ca, Chelliah Sriskandarajah, School of Management, JO47, The University of Texas at Dallas, 2601 N. Floyd Rd., Richardson, TX 75248, USA, chelliah@utdallas.edu

A robotic cell is a manufacturing system that is widely used in industry. Our research concerns scheduling multiple products in a robotic cell served by a dual gripper robot with the objective to maximize the throughput rate in the cell. In the system under consideration, the robotic cell contains two robot-served machines, repetitively producing a set of multiple parts, in a steady state. The processing constraints specify the cell to be a flow shop. For the system under study, it is known that the problem of finding an optimal parts sequence is strongly NP-hard, even when the robot moves sequence is given. The intractable problems of parts sequencing in two-machine dual-gripper robot cell is the main subject of our investigation. We provide the unified notational and modelling framework to study the family of all those NP-hard problems that are associated with the potentially optimal robot moves sequences. Under this framework, the analysis of the problems has been conducted. The main result of our work is the findings on approximation algorithmic approach with a worst-case ratio performance guarantee of 3/2 to tackle these intractable parts sequencing problems.

Dominance Orders for Scheduling Problems, George Steiner, Faculty of Business, McMaster University, 1280 Main Street West, Hamilton, Ontario, Canada, steiner@mcmaster.ca , Paul Stephenson, Dept. of Mathematics and Statistics, Acadia University, Wolfville, N. S. B0P 1X0, Canada, paul.stephenson@acadiau.ca

A partial order on the set of jobs in a scheduling problem is a dominance order if there is an optimal sequence for the jobs which is a linear extension of the order. We consider a new technique, called subset-restricted pairwise interchange that can be used to interchange pairs of jobs around subsets of jobs without increasing the cost of the schedule. We use a new interchange operator, we call Shuffle Interchange (SI), which generalizes well-known interchange operators used in scheduling theory. Using SI, we derive new dominance orders for various one- and two-machine scheduling problems and give a unified treatment of all these dominance orders.

Scheduling Identical Parallel Cells with Dynamic Arrivals and Sequence Dependent Set-up Times, Jatinder N. D. Gupta, Department of Management, Ball State UniversityMuncie, IN 47306, USA, jgupta@bsu.edu, Alex J. Ruiz-Torres, College of Business Administration, University of Texas at El Paso, El Paso, Texas 79968, USA

The implementation of cellular manufacturing systems involves the processing of part families on dedicated machine clusters (cells). This leads to reduced total set-up times, work-in- progress inventory, and lead times. However, the clustering of machines to serve a specific product family reduces the flexibility of the shop, especially during Rev 3-7-01

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demand variations. In face of demand variations, parallel cells could be used to reduce the time required to process each job. This paper investigates several heuristics in an environment with identical parallel cells with dynamic job arrivals and due dates. These heuristics attempt to minimize several performance measures.

Joint Work to Build a Framework to Solve Combinatorial Optimization Problems, Felipe Martins Müller, Departamento de Eletrônica e Computação – CT, Universidade Federal de Santa Maria, 97105-900 Santa Maria – RS – Brazil, felipe@inf.ufsm.br , Andréa Toniolo Staggemeier

This paper present the goal results of the offer employed into works on Project of Optimization Center Distributed (POCD), Memetic Algorithms to Combinatorial Optimization Problems (MemePool) and the Framework to Combinatorial Optimization Problem, each as executed in collaboration between the following universities: PUC/RS, UNICAMP e UFSM respective. There are presented the preliminary definitions, specifications and development patterns that helpless the professional of Operational Research, each other them, the reusability and reification (i.e., incorporation environments of a kind of problem in other) date and methods of solution of Optimization Problem always available, well as the differences observed in the use of new technologies, each as: use of Class Library with Java Native Interface (JNI), Remote Method Invocation (RMI), Common Object Request Broker Architecture (CORBA), to the build of a structure named Framework.

A Model of Human Scheduling Practice: Implications for Planning, Scheduling and Control Process Design, Sarah Crawford, School of Mechanical, Materials, Manufacturing Engineering and Management, University of Nottingham, Nottingham, England NG7 2RD, sarah.crawford@nottingham.ac.uk , Jane Guinery, Bart MacCarthy

A recent research project investigated the reality of production scheduling across a number of industrial sectors, by studying schedulers in the field. This research produced a model of human scheduling practice (Crawford, 2000) that describes the behaviour and performance of schedulers in terms of tasks, roles and monitoring behaviour. The findings contradict assumptions held within the OR domain - schedulers’ jobs comprise of social, organisational plus cognitive functions. The findings underpin new research investigating the contribution of planners and schedulers across the planning, scheduling and control (PSC) process. A framework is presented that demonstrates the application of the model in addressing the design of responsive PSC processes within four cross-sector businesses.

SA-16-3 Session Title: Operations Planning, Scheduling and ControlSession Chair: Yong-Hyuk Kang, Korea University, kangyh@kuccnx.korea.ac.krSession Time and Location: Saturday, March 31, 2001, 4:00-5:30, Morocco

Rev 3-7-0189

Using SPC Chart Techniques in Production Planning and Scheduling: Two Case Studies, Thananya Wasusri, The University of Nottingham, University Park, Nottingham, England NG7 2RD, epxtw@unix.nottingham.ac.uk, Bart MacCarthy

Theoretical scheduling has reached a mature state but there are difficulties in using the theory in practice. One of the issues is the occurrence of disturbances. Studies have been done to investigate the possibility of using control chart techniques to detect disturbances in production planning and scheduling. Appropriate control chart techniques have been developed that avoid statistical problems, assuming that the whole system may be viewed as a dynamic process. To validate the new techniques, data has been collected in two different business sectors. The control charts show their ability to detect changes and have great potential for practical implementation.

Dynamic Cell Formation and Family Assignment in Cellular Manufacturing Systems, Alex Ruiz-Torres, Information and Decision Sciences Department, College of Business Administration, University of Texas at El Paso, 500 W. University Avenue, El Paso, TX 79968-0544, USA, aruiztor@utep.edu

This paper investigates algorithms that combine virtual cell formation, family assignment, and job scheduling decisions in a dynamic environment where product mix and other shop/product characteristics change over time. Product mix fluctuations result from changes in the economy, technology, new product introduction, or sale promotions to mention a few. In face of product mix fluctuations, production resources across cells can be shifted, family assignments changed, and schedules modified. In virtual cells, the reconfiguration of the production resources is done only logically, and limited physical changes are made. The paper discusses experimental results and their implications for virtual cell control.

Towards a More Effective Method of Scheduling Resource-Constrained Multiple Projects, Ed Walker, Dept. of Information Systems & Logistics, Georgia Southern University, P.O. Box 8152, Statesboro, GA 30460, USA, edwalker@gasou.edu

There has been much research examining the issues of planning and controlling projects in the multiple project resource constrained environment but little agreement on the best method to schedule such projects. In 1998 Rob Newbold published Project Management in the Fast Lane in which he applied the principles of theory of constraints to the management of single projects and revolutionized the way single projects are managed. This presentation will present a TOC-based approach to scheduling resource-constrained multiple projects and will also present the results of a simulation comparing the proposed heuristic with more conventional methods.

How to Implement Integrated Project Management for Plant Constructors, Rico Wojanowski, Fraunhofer Institute IFF, P.O. Box 14 49, 39004 Magdeburg, Germany, wojanowski@iff.fhg.de , Andreas Hartung

Project management is a high complex business, whose success depends on the co-operation between the different partners. A concept to fulfill the high expectation is the use of the network. The next article introduces a model explaining how such a network could look like and the way out from the old competitive balance to a new collaborative Rev 3-7-01

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balance. For that we introduce a  new step concept, which is divided into different parts showing the high  efficiency. The advantage of the step strategy shall be underlined andproved by means of objective parameters by comparing the step concept with other concepts. The speed and the efficiency are very important  for the success of the concept. How to keep to the critical parameters is what to find out.

A Study on Making Daily Output Plans of End Products in a LCD Manufacturing Factor, Yong-Hyuk Kang, CIM/ERP Lab., Department of Industrial Engineering, Korea University, 1, 5-ka, Anam-dong, Sungbuk-ku, Seoul, 136-701, KOREA, kangyh@kuccnx.korea.ac.kr, Sung-Shick Kim

The problem of making daily output plans of end products to meet a set of orders within each due-date in LCD manufacturing factory, while balancing work load for each manufacturing lines in each day is considered in the study. Because the routing through lines of products is fixed, the working load of prior lines in each day depends on how the daily output is planned in the previous lines. Also, the capacity of the each line is given in the form of the maximum lot of each product, which can be produced in 24 hours. The proposed approach for solving the problem consists of three main steps: 'Aggregatedcapacity step' finds the aggregated capacity of each line using information on work calendar and capacity per line and product, 'Ideal product mix rate step' finds the rate which balances load on each line ideally. 'Plan generating step' creates daily output plans using the information of aggregated capacity and ideal product mix rate gained in the previous two steps. IP formulation is suggested for the problem and the solutions of the proposed heuristics are compared with those generated by CPLEX in terms of quality andcomputation time.

SU-16-1 Session Title: Supply Chain ManagementSession Chair: Chelliah Sriskandarajah, The University of Texas at Dallas, chelliah@utdallas.edu Session Time and Location: Sunday, April 1, 2001, 10:00-11:30, Morocco

Cost Analysis of Product Postponement, Michael X. Weng, Department of Industrial and Management System Engineering, University of South Florida, 4202 E. Fowler Avenue, ENB 118, Tampa, FL 33620, USA, weng@eng.usf.edu, William Barretto, Department of Industrial and Management System Engineering, University of South Florida, 4202 E. Fowler Avenue, ENB 118, Tampa, FL 33620, USA

Product postponement can be defined as the process of delaying the point of product differentiation to a later stage in the supply chain. The point of differentiation can be defined as the stage after which different products assume their unique identities. To implement product postponement, changes have to be made to existing design and/or processes in a supply chain. These changes have costs associated with them. We develop a model to characterize the cost benefits of product postponement.

Should You Build a Process Plant or a Product Plant: A Model-Based Analysis, Shailesh Kulkarni, BCIS Department, College of Business Administration, Box 305249, University of North Texas, Denton, TX 76203-5249, USA, kulkarni@unt.edu, Michael Rev 3-7-01

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J. Magazine, Department of Quantitative Analysis and Operations Management, College of Business Administration, University of Cincinnati, P.O. Box 210130, 525 Carl H. Lindner Hall, Cincinnati, OH 45221-0130, USA, mike.magazine@uc.edu, Amit Raturi, Department of Quantitative Analysis and Operations Management, College of Business Administration, University of Cincinnati, P.O. Box 210130, 530 Carl H. Lindner Hall, Cincinnati, OH 45221-0130, USA

The choice between setting up a Product v/s a Process Plant Network can be difficult. It is influenced by a number of factors such as market dynamics, inbound and outbound logistics costs and service level requirements. In this paper we develop network configuration models for a two-plant, two-subassembly, two-market, single product scenario. The paper is motivated by the real-life network configuration of a major telecommunications manufacturer based in North America. We develop static configuration models in which operational decisions are not considered explicitly and dynamic configuration models, which explicitly take long-term average operational costs into account. We find that static configuration models offer inferior policies as compared to dynamic models. An important result is that implicit service level requirements strongly affect the choice of network configuration and that this choice is further convoluted by demand uncertainty and logistics costs.

Effects of Forecasting Error on LP Aggregate Planning Models, Hank Maddux, Dept. of Management and Marketing, Sam Houston State University, Huntsville, Texas 77320, USA, mgt_hsm@shsu.edu

The sensitivity of linear programming models of the aggregate planning problem to forecast errors is evaluated under varying cost coefficient relationships. A methodology for evaluating the performance of rolling horizon production planning models will be demonstrated. The planning environment is characterized by highly seasonal demand, limited capacity to hold inventory, and significant productivity effects created by employee turnover. Techniques for cost determination will be discussed.

Integrating Manufacturing Planning and Control Systems into the Supply Chain, Herb Blake, California State University- Sacramento, Sacramento, CA 95819-6088, USA, blakeh@csus.edu

Manufacturing Planning and Control (MPC) systems play a vital internal role in manufacturing organizations, helping to develop overall and detailed material and capacity plans and schedules. When elements of a manufacturing organization’s planning and scheduling are made known to supply chain partners, the linked companies can improve their respective supply chain performances. The paper reviews the basic elements of MPC systems, discusses how knowledge of these elements can assist supply chain partners, and discusses methods for sharing MPC data. Examples of applications are given to illustrate the methods and results of integrating MPC systems into the supply chain.

Re-Engineering Manufacturing Logistics: Sequencing and Merging Operations, Houmin Yan, Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Room 213, Ho Sin Hang Engineering Building, Shatin, NT Hong Kong, yan@se.cuhk.edu.hk, Chelliah Sriskandarajah, School of Rev 3-7-01

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Management, JO47, The University of Texas at Dallas, 2601 N. Floyd Rd., Richardson, TX 75248, USA, chelliah@utdallas.edu, Suresh P. Sethi, School of Management, JO47, The University of Texas at Dallas, 2601 N. Floyd Rd., Richardson, TX 75248, USA, sethi@utdallas.edu

We investigate the impact of the manufacturing and distribution process on the safety stock cost in a supply chain. The pipeline hedging method is used to derive a model for estimating the safety stock cost. We use the concept of re-engineering the manufacturing and distribution process to minimize the cost of safety stock for a specified service level. The product family consisting of one product and two products are studied in detail. Conditions and insights for better supply chain management are developed. These conditions and insights enable us not only to decide when a process re-engineering activity is appropriate, but also to suggest the scale and the format of the process re-engineering. Based on the obtained results, two procedures, namely re-sequencing and merging, are developed. Finally, we demonstrate how these procedures can be extended to the product family consisting of multiple products in a hierarchical manner.

MO-16-1 Session Title: Some Production Scheduling ProblemsSession Chair: Thomas W. Sloan, University of Miami, tsloan@miami.eduSession Time and Location: Monday, April 2, 2001, 10:00-11:30, Morocco

Single Machine Scheduling via Tabu Search, Tuncay Bekiroglu, Murat Koksalan, Suna Kondakci Koksalan, Krannert School of Management, Purdue University, West Lafayette, IN 47907-1310, USA, kondakcis@mgmt.purdue.edu , Meral Azizoglu

In this paper, we propose a tabu search approach for the problem of minimizing flowtime and number of tardy jobs in a single machine environment. We evaluate the performance of the approach by comparing it with the optimal solution for some artificially created problems. We report computational experience for problems with 100 jobs. We also evaluate the sensitivity of the approach to changing tabu search parameters; window size and distance window.

Dynamic Parallel Machine Scheduling with Release Dates, Due Dates & Sequence-dependent Setup Times, HyunJoon Shin, Korea University, Anamdong 5th St., Seoul, 136 701, Korea, mrshin@ie.korea.ac.kr , KyoungSuk Ko, SungSchick Kim

We study the scheduling of a given set of dynamic arrival jobs on several identical parallel machines with sequence-dependent setup times. The objective is to schedule the jobs to minimize the maximum lateness (Lmax). We provide an effective heuristic algorithm which generates a good initial solution and then improves the solution by hybrid tabu search. The algorithm has been evaluated using benchmarking data from the related several internet sites.

Solving Multi-objective Production Scheduling Problems Using Metaheuristics, Jacques Teghem, Faculté Polytechnique de Mons, 9, rue de Houdain. 7000 Mons. Belgium, Teghem@mathro.fpms.ac.be , Taïcir Loukil, Philippe Fortemps, Daniel

Rev 3-7-0193

Tuyttens

Most of the research in production scheduling is concerned with the optimization of a single criterion. However, analysis of the performances of a schedule often involve more than one aspect and therefore require multi-objective analysis. We consider several multi-objective scheduling situations and we are interested to generate or to approximate the set of all the efficient solutions. We tackle such a problem by using an adaptation of Simulated Annealing or Tabu Search to a multiple objective framework. The corresponding methods – called MOSA and MOTAS – are first described. Then the results of numerical experiments are presented and analysed.

Analysis and Recommendation of Improving Scheduling of a Range and a Military Environment, Bahador Ghahramani, Engineering Management Department, School of Engineering, University of Missouri – Rolla, Rolla, MO 65401-0249, USA, g hahrama@umr.edu

The primary objective of this project was to explore the use of current industrial scheduling techniques for scheduling the use of training ranges in the Department of Defense (DoD). We focused on three basic training brigades in one of the adjacent bases. Unlike the other units on post, the three brigades' basic training requirements did not change during this project. This paper also analyzes the training requirements and resources that were available to these three brigades were made available by the Training and Doctrine Command (TRADOC).

Simultaneous Determination of Production and Maintenance Schedules Using In-Line Equipment Condition and Yield Information, Thomas W. Sloan, Department of Management, School of Business Administration, University of Miami, Coral Gables, FL 33124-9124, USA, tsloan@miami.edu

In this paper, we develop a semi-Markov decision process model of a single-machine production system with multiple products and multiple repair actions. The model simultaneously determines maintenance and production schedules, accounting for the fact that equipment condition can affect the yield of different products differently. After examining structural properties, we compare the combined method to the approach often used in practice: a simple threshold maintenance policy and an FCFS dispatching policy. In the more than 11,000 problems studied, the simultaneous approach yielded rewards that were an average of more than eight percent greater than the traditional approach. The results indicate that the improvement increases as the uncertainty of repair and variability of yield increase.

MO-16-2-1 Session Title: Analysis of Manufacturing DecisionsSession Chair: Brian Neureuther, Garner Webb University, bneureauther@gardner-webb.eduSession Time and Location: Monday, April 2, 2001, 2:00-3:30, Salon A

New Tools For Reducing Lead Time, Riurik Skomorokhov, Bauman Moscow State Technical University, Russia, Moscow, 121096, 2-ya Philevskaya, 13, 15, skomorokhov@mtu-net.ru

Rev 3-7-0194

When given common work stations number and labor requirements of products planned for manufacturing, achieving minimum lead time of products manufacturing, allows to obtain minimum possible cost, inventory (WIP), etc. For conditions of small and mid-volume machine-building production, we found out factors most influencing on the lead time: structure of work stations and sequence of products manufacturing. Our research demonstrated significant limits of changing lead time depending on the factors. Only in the case of a prioiri best possible variants of work stations structure investigated, more effective structuring and sequencing allowed to reduce the lead time from 20% to 30%.

Enterprise Co-operation and the Forrester Effect, Florent Frederix, Alcatel Microelectronics, Excelsiorlaan 44-46 B-1930 Zaventem, Belgium, florent.frederix@mie.alcatel.be

Internet enables collaborative planning of enterprise networks, however co-operation between businesses has been constrained due to information hiding. Companies are afraid that knowledge about available capacity and forthcoming demand will be misused by the partners in the supply chain. Different levels of information sharing are possible: (1) from the default in which the subcontracting company only returns a fixed lead time and quotation for an order request or (2) a scenario in which the subcontracting partner supplies a set of available production time slots up to (3) full resource schedule information. The subcontracting enterprise can also provide visibility on future demand. In this process are the information propagation delay from customer- to subcontracting units, and in case of forthcoming demand propagation the probability that the received demand will materialise into orders for the subcontracting company, important. A recently developed collaborative planning methodology in which all of the above described variables can be modified is used to predict the bullwhip effect in a multi-tier automotive and microelectronics supply chain.

Justifying Break-Even Anlaysis, Robert F. Bordley, P.O. Box 100, MC 482-D20-B24, Renaissance Center, Detroit Michigan 48265-1000, USA, robert.bordley@gm.com

Break-even analysis, and stochastic break-even analysis, are widely used in production & operations management for capacity, pricing and other decisions. Its convenience and simplicity makes it appealing but it's often viewed as less satisfactory than expected profit maximization. As this paper shows, however, stochastic break-even analysis can be interpreted as equivalent to expected utility maximization. Hence, depending upon how the stochastic break-even point is chosen, it may be more theoretically defensible than expected profit maximization.

Estimating Cycle Times in Complex Job Shops, Brian Neureuther, Broyhill School of Management, Garner Webb University, Campus box 7208, Boiling Springs, NC 28017, USA, bneureauther@gardner-webb.edu , George N. Kenyon

The development of Little's Law has been shown to give relatively precise and replicable estimates of true cycle time in a variety of production (or network queuing) systems. The majority of work using Little's Law has been done with queuing systems involving single products and single operations. However many queuing systems, such as semiconductor fabrication, are much more complex and involve several products with dozens of operations. In this paper we shall compare expected cycle time as computed by Little's Rev 3-7-01

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Law to the actual cycle time determined simulation analysis and a single and multiple product, multiple operations semiconductor fabrication system. The question of whether or not Little's Law appropriately estimates cycle time in single or multiple product, multiple operations systems is addressed.

MO-16-2-2 Session Title: Production and Inventory Planning ProblemsSession Chair: Bahador Ghahramani, University of Missouri - Rolla, g hahrama@umr.edu Session Time and Location: Monday, April 2, 2001, 2:00-3:30, Morocco

Batch Sizes in Push Manufacturing, Tom Biss, Plymouth Business School, University of Plymouth, Plymouth PL4 8AA, UK, Tom.Biss@pbs.plym.ac.uk

Isn't Push manufacturing dead and 1 the best batch size? Many manufacturing companies still use a Push system and they do so with batches of more than 1! They need to produce with little risk of late completion. To reflect this need, a new measurement, MUST (1%) (Minimum Upper Supply Time) was introduced. This is the throughput time that is only exceeded on 1% of occasions. The paper discusses the results of a series of simulation trials and the relationships which emerge between production batch size, plant utilization, average throughput time, WIP and MUST (1%).

The Effect of Skewed Demand During Lead Time on the Optimal Inventory Policy in the Multi-Period Inventory Problem, Thomas Wedel, Department of Management Science, California State University – Northridge, 18111 Nordhoff Street, Northridge, CA 91330-8245, USA

The multi-period inventory problem with uncertain demand an uncertain lead time is commonly encountered in business. In most models, the dual random variables of uncertain demand during any. An uncertain lead time are typically combined and their combined probability distribution is assumed to be normal. In my prior research, I examine the interaction of uncertain demand an uncertain lead time as separate and distinct random variables and demonstrated the resultant demand during lead time was often a random variable width is skewed distribution. In this research, simulation will be utilized to examine the relationship between the optimal inventory strategy (reorder point and order quantity) and degree of skewed during lead time.

The Combined Cutting Stock and Lot Sizing Problem in Industrial Processes, Paulo M. Franca, Faculdade de Engenharia Eletrica e de Computação, Universida de Estadualde Campinas, Av. Albert Einstein 400, 13083-970 Campinas, SP, Brazil, franca@densis.fee.unicamp.br , Maria Cristina Gramani

This paper analyses the trade-off that arises when we solve the cutting stock problem taking into account the production planning for various periods. The goal here is to minimize the trim loss, the storage and setup costs. We formulate a mathematical model of the combined cutting stock and lot sizing problem and propose a solution method based on an analogy with the network shortest path problem. Computational results comparing the combined problem solutions with those obtained by the method generally used in industry - first solve the lot-sizing problem and then solve the cutting stock Rev 3-7-01

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problem - are presented. These results demonstrate that by combining the problems it is possible to obtain benefits of up to 25% profit.

The Effect of Production Planning Practices on Manufacturing Performance in Egyptian Textile Industry, M. Tawfik Mady, Quantitative Methods and Information Systems Department, College of Administrative Sciences, Kuwait University, P. O. Box5486 SAFAT, 13055, Kuwait, mady@cas.kuniv.edu.kw

The current understanding of the relationship between production planning practices and plant performance is limited to analytical and logical explanations. Little has been reported empirically about how this relationship works in practices. This paper is an effort to explore these practices and investigate their effects on manufacturingperformance in the Egyptian textile industry. It focuses on: (1) the major factors considered in developing the plant’s production plan; (2) options considered when demand exceeds capacity; and (3) options considered when demand is less than capacity, and their effects on cost, delivery, and flexibility performance.

Production Planning and Scheduling of a Bridge Terminal Transport in the Tracking Industry, Bahador Ghahramani, Engineering Management Department, School of Engineering, University of Missouri – Rolla, Rolla, MO 65401-0249, USA, ghahrama@umr.edu

The purpose of this project was to develop effective production planning and scheduling tracking company. This tracking company is one of the major operating companies in the industry, and operates sixteen offices throughout the United States. The tracking industry is facing an escalation of insurance and maintenance. This project was initiated to improve the production planning and scheduling of the tracks in this industry, and to minimize the insurance and maintenance costs of the tracks.

MO-16-3 Session Title: Production Control Methods and AnalysisSession Chair: Howard Ralph, Jr., Clemson University, ralph@clemson.eduSession Time and Location: Monday, April 2, 2001, 4:00-5:30, Salon A

Process Flow Scheduling: An Alternative to MRP Systems, Sam G. Taylor, College of Business, University of Wyoming, Laramie, WY 82071, USA, sgt@uwyo.edu , Steven F. Bolander

Process flow scheduling is a relatively new framework that describes the scheduling logic used in commercial scheduling packages for process industries. These commercial packages have been installed in over 800 manufacturing plants. Process flow scheduling is a simple, flexible scheduling system framework that is an alternative to the closed-loop MRP framework. The central concept underlying all process flow scheduling systems is the use of the process structure to guide scheduling calculations. This contrasts to MRP systems, in which the product structure guides scheduling calculations.

A Feasibility Study for Implementing a Cellular Manufacturing Solution for a Foil Rev 3-7-01

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Cutter Production Line, M. Ali Montazer, University of New Haven, 300 Orange Ave., West Haven, CT 06516, USA, montazer@charger.newhaven.edu , Alan J. Peterson, Martin Klein

With the objective of improving the throughput of an existing foil cutter production line, a feasibility study for implementing a cellular manufacturing approach was undertaken. Given the layout, machine types and capabilities, product mix and corresponding monthly requirements, the simulation software ARENA was used to simulate the existing operation, from the press-room through assembly and the final packaging for distribution. Our simulation as well as the initial investigation for data gathering produced eye-opening results. A unified cellular solution was determined to be both operationally and ergonomically inadequate. However, a cellular arrangement for a portion of the production line was found to be superior to the existing arrangement. The study results and recommendations are currently being implemented in a plant in Connecticut.

Resource Allocation with Lumpy Demand: To Speed or Not to Speed?, Charles Munson, Department of Management and Decision Sciences, College of Business and Economics, Washington State University, PO Box 644736, Pullman, WA 99164-4736, USA, munson@wsu.edu , Bintong Chen

Given multiple products with unique lumpy demand patterns, this paper explores the determination of both the lot size for each product and the resource allocation among the products, given an investment budget for production rate improvements. Each product's optimal production policy takes on only one of two forms: either continuous production or lot-for-lot production. A heuristic procedure decomposes the problem into a mixed integer program and a nonlinear convex resource allocation problem. The model can be extended to allow the firm to simultaneously alter both the production rates and the incoming demand lot sizes through quantity discounts.

Knowledge in Planning, Scheduling and Control, Jane Guinery, School of Mechanical, Materials, Manufacturing Engineering and Management, University of Nottingham, Nottingham, England NG7 2RD, Sarah Crawford, Bart MacCarthy

To provide responsive order fulfillment within manufacturing organisations, production, scheduling and control (PSC) processes are often human intensive. It is important in these scenarios to understand the encapsulation, application and dissemination of knowledge that supports associated individual ,team and networking activities. Research is being undertaken by the University of Nottingham in collaboration with a consortium of large manufacturing businesses across a number of sectors to develop an understanding of established and evolving PSC processes. This paper describes a framework, generated from initial field study investigation and a review of the research domain, designed to underpin the element of this research that focuses on knowledge and its management within the PSC process.

An Analysis of the Effects of Interdependence and Variability on the Operational Control of a Five-Station Manufacturing Cell, Howard Ralph Jr., College of Business and Public Affairs, Clemson University, 425 Sirrine Hall, Box 341392, Clemson, SC 29634-1392, USA, ralph@clemson.edu

Rev 3-7-0198

Manufacturing Control systems most often seek to minimize the difference between planned performance and actual performance based upon an estimate of the effective capacity of the manufacturing process being controlled. A simulation model is used here to test hypotheses concerning the effects on the throughput rate of a manufacturing cell caused by interdependence of the constituent workstations, variability in production flows, and the interaction between these two factors. Location, source and magnitude of variability and the degree of coupling of the subsystems of the cell describe the relevant levels of the variables of interest in this study.

Track: Operations Strategy Track Chair: Christer Karlsson, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden, christer.karlsson@hhs.se

SA-17-1 Session Title: Process design and assessmentSession Chair: Session Time and Place: Saturday, March 31, 2001, 10:45-12:00, Kenya

A Multi-Factor Customer Order Decoupling Point, Martin Rudberg, International Graduate School of Management and Industrial Engineering, Linköping Institute of Technology, SE-581 83 Linköping, Sweden, martin.rudberg@ipe.liu.se, Joakim Wikner, Graduate School of Management and Industrial Engineering, Linköping Institute of Technology, SE-581 83 Linköping.

One important aspect in formulating an operations strategy is the positioning of the customer order decoupling point (CODP), defined as the point separating the customer order driven material flow from the forecast driven, usually in terms of the acronyms ETO, MTO, ATO, and MTS. However, this definition only covers one aspect of the multi-faceted situation companies face when dealing with customer orders. Hence, the purpose of this paper is to present a multi-factor CODP based on three perspectives, viz. logistics, engineering, and resources. This broader definition offers an enhanced understanding of the CODP and how it can be used.

The conceptual structure of a unified framework of manufacturing and supply system management, Bin Wu, School of Industrial and Manufacturing Science, Cranfield University, Cranfield, Bedford MK43 0AL, UK, B.Wu@cranfield.ac.uk

In order to continuously improve their efficiency, many companies have to redesign or restructure their manufacturing and supply (MS) systems, so that a set of coherent strategies can be supported. This paper aims to set systems thinking into the context of manufacturing and supply systems management (MSM), which is defined here as a domain that involves the activities necessary to the design, regulation and optimization of a MS system as it progresses through its life cycle. The conceptual structure of a unified MSM framework is presented. This framework specifies the key functional areas involved, outlines the contents and relationships within them, and then integrates these into a closed-loop logically to provide the basis for the development of a set of consistent parameters and procedures. The framework’s industrial applications will also be reported.

Rev 3-7-0199

A Process for Manufacturing Objective Deployment,Kim Hua Tan, Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, kht23@eng.cam.ac.uk, Ken Walter Platts, , Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge.

Literature on existing manufacturing strategy is very much focused on the formulation and setting of manufacturing objectives, little is available on the process of translating these objectives into action plans. This paper addresses this gap by presenting a three stage process: decomposing the objectives, identifying alternative actions and evaluating these actions. The process operationalises Burbidge’s Connectance Model for identifying variable relationships, and uses Analytic Hierarchy Process (AHP) for evaluating alternatives. The early findings of the application of this process in industrial cases are briefly described.

The Final Verification Process - Methods for increased efficiency, Dan Paulin, Department of Operations Management and Work, Chalmers University of Technology, SE-142 96 Gothenburg, Sweden, danpau@mot.chalmers.se, Jan Lindér, Department of Operations Management and Work, Chalmers University of Technology, SE-142 96 Gothenburg, Sweden

As there is a growing need for faster time-to-market in the automotive industry, the importance of efficient work methods during the last part of the development process (final verification) increases. In this paper, data from several empirical studies in the Swedish automotive industry is presented. Methods, with a varying degree of cross-functional co-operation and usage of virtual verification tools, are compared and evaluated.The results show: The use of virtual methods may have significant impact on the total performance. At the same time, it creates new demands on the development process as well as the physical verification process.The importance of competence integration early in the verification phase. The findings create possibilities for companies to develop their operations strategy for increased performance.

SA-17-2-1 Session Title: Organization and Human FactorsSession Chair: Lawrence M. Corbett, Victoria University of Wellington, PO BOX 600, Wellington, New Zealand, Lawrie.Corbett@vuw.ac.nzSession Time and Place: Saturday, March 31, 2001, 2:00-3:30, Kenya

Telework and Human Relations Management: the Relationship between Production Strategy and the Adoption of Telework in Industrial and Service Companies, Angel M. Sánchez, Departamento de Economia y Direccíon de Empresas. Centro Politécnico Superior, Maria de Luna, 3, Zaragoza, 50015, Spain, anmarzan@posta.unizar.es, Manuela Pérez, Departamento de Economia y Direccíon de Empresas. Centro Politécnico Superior, Maria de Luna, 3, Zaragoza, 50015, Spain, Pilar de L. Carnicer, Departamento de Economia y Direccíon de Empresas. Centro Politécnico Superior, Maria de Luna, 3, Zaragoza, 50015, Spain

Rev 3-7-01100

Telework as an integration of Information and Telecommunication Technologies with human resources management, means a new job organisation paradigm for companies working in the New Economy. However, there are very few empirical studies that have analyzed the probability of telework adoption in industrial and service companies. This paper contributes with empirical data to the relationship between the use of telework techniques and the implementation of this new work organisation, with the production strategy of the company. More precisely, the paper uses data from Spanish companies to test the relationship between innovation, export, compensation, employee training, gender and other production strategy features with the probability of telework adoption.

Long run strategies aiming intermediate goals and short run politically sustainable, Felipe Graeml, ReisEst. Graciosa, 6435 - Colombo, PR - Brasil CEP: 83413-200, felipe.graeml@per.com.br, Alexandre Graeml, ReisEst. Graciosa, 6435 - Colombo, PR - Brasil CEP: 83413-200, Rolf Erdmann, ReisEst. Graciosa, 6435 - Colombo, PR - Brasil CEP: 83413-200

The centralization of benefits in middle size and large cities can bring many problems that make city councils look for corrective rather than proactive strategies, which are usually expensive and inefficient. This paper discusses the use of political strategic planning, instead of executive operational strategies. Education, though aiming at providing better quality of life on the long run, is an effective way of achieving intermediate goals in the short run. Among those are: decreasing malnutrition rates, generating opportunities related to sport and leisure, decreasing criminality, improving health of the population and the ability for work, as they all add up to better standards of life.

The Commonalities of Leadership across a Variety of Lean Manufacturing Operations: Observations from Shingo Prize Recipients, Brian Atwater, 3510 University Blvd, Utah State University, Logan, UT 84322-3510, USA, batwater@b202.usu.edu, Ross Robson, 3510 University Blvd, Utah State University, Logan, UT 84322-3510, USA

In 1988 The Shingo Prize for Excellence In Manufacturing was launched. Since that time over 50 companies have received the award. While all the recipients are involved in manufacturing the specific environments are quite varied from relatively large volume auto parts producers to low volume fine jewelry manufacturers. This study presents the findings from interviews, surveys, and case studies conducted with top-level managers from several of these past recipients representing a wide variety of manufacturing operations. The focus of this research is to identify commonalities in leadership practices, across a broad range of manufacturing environments, that result in the successful application of lean manufacturing principles. The study also seeks to test the validity of several theories related to leadership and world-class manufacturing.

Developing Global Operations From a Small, Isolated Country, Lawrence M. Corbett, Victoria University of Wellington, PO BOX 600, Wellington, New Zealand, Lawrie.Corbett@vuw.ac.nz

Rev 3-7-01101

This paper examines the operations strategies of six manufacturing companies based in New Zealand. From a small and isolated economy these companies have built successful international businesses. In some cases they are world leaders with market shares of 20-40%. The paper considers how operations management in these organizations has responded to large-scale changes in their business environments. Common features include a drive to reduce manufacturing lead-time, get better technical engineering control of production, improve material flow and manage the social aspects of production through teams and multi-skilling of workers. The paper also discusses the international networks set up by these companies to develop their global aspirations.

SA-17-2-2 Session Title: A Network PerspectiveSession Chair:Session Time and Place: Saturday, March 31, 2001, 2:00-3:30, Executive Suite 2

Networks, Virtual Enterprises and Small Business: Inter-organizational relationship classification methodology, Anderson B. Castanha, Campus Universitário da univerdade Federal de Juiz de For a, Facultade de Economia e Administração. Juiz de For a - MG. Brazil, CEP: 36036-330, castanal@ruralrj.com.br, Clarice B. Porto, Campus Universitário da univerdade Federal de Juiz de Fora, Facultade de Economia e Administração. Juiz de Fora - MG. Brazil, CEP: 36036-330

This works condenses a research about small and medium business inter-organizational networks. Because of Small and Medium Businesses' importance to global development, it’s necessary to improve their competitiveness. Virtual Organization is a flexible inter-organization model for SMB joining them. However, the complexity of the several enterprises' interactions increases in those models. The authors present an inter-organizational relationship classification methodology. This methodology can identify commonalties and differences as of a certain domain. Each domain gathers the inter-organizational relationships according to the interaction of specific characteristics: autonomy, contact interface and competition; then approaches can be done in a better way.

The Strategic Reference Point Matrix Networks and the Strategic Operation Management Innovation: interactions and methodology, Anderson B. Castanha, Campus Universitário da univerdade Federal de Juiz de Fora, Facultade de Economia e Administração. Juiz de For a - MG. Brazil, CEP: 36036-330, castanal@ruralrj.com.br, Marcelo M. Monteiro, Campus Universitário da univerdade Federal de Juiz de For a, Facultade de Economia e Administração. Juiz de Fora - MG. Brazil, CEP: 36036-33

The Strategic Reference Point Matrix is a powerful environment, business analysis tool. This paper explains the 3-dimensional SRP-Matrix utility on technologic innovation. The authors focus the operation management and its deployment. Operation management, as a technology, also needs innovation and this is fundamental to organization future. An approach is presented considering the SRP-Matrix's axis (internal organization, external conditions and time), the operation sources of competitive advantage and theirs interactions. Then, it's described how develop and examine scenarios and the steps to take

Rev 3-7-01102

to improve innovation on strategic operation management so that becomes a real competitive advantage in a changing world.

Managing Innovation a Point of View of SME's Networks in the Brazilian Electronic Industry, Maria Elena León, Politechnic School - University of São Paulo, Av. Professor Almeida Prado No. 128 Travessa 2 - sala 229, CEP 05508-900, Production Engineering Department, Cidade Universitaria, Brazil, melena@usp.br, João Amato Neto, Politechnic School - University of São Paulo, Brazil

Innovation is widely recognized as central to the success of most companies. This paper investigates the advantages and disadvantages of the innovation process on Brazilian Small and medium enterprises (SME´s) of the electronic sector. We used a case study and applied a detailed questionnaire. Among the principal disadvantages, we highlight a poor laboratorial infrastructure and troubles for obtain financial resources. Similarly, as an advantages, we detect a quick availability of information, organization learning and cultural change. Besides this, the intention is to point out some possible ways to improve the innovation process supported by SME´s networks on electronic industries.

Outsourcing Multiple Activities across Functions, Markus Biehl, Schulich School of Business, York University, 4700 Keele St, Toronto, ON M3J 1P3, Canada, mbiehl@schulich.yorku.ca, Michael A. Smith, Schulich School of Business, York University, Canada, Edmund Prater, Schulich School of Business, York University, Canada

Despite the frequent practice of outsourcing multiple activities within functions or multiple functions as a whole, most outsourcing studies available to date treat only single functions at a time. To remedy this situation, we investigate which primary and support functions of Porter's value chain could be outsourced together. We present an outsourcing model based on the fundamental management literature and interviews. The structured interviews were conducted with managers of multiple departments involved in outsourcing decisions. In this paper, we present the insights gained from the literature andinterviews.

SA-17-3 Session Title: Knowledge Perspectives on Operations StrategySession Chair: John Mills, Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, jfm@eng.cam.ac.ukSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Kenya

Manufacturing Strategy and Organizational Knowledge Relationship in the Production Value Chain, Ely Laureano Paiva, UNISINOS - Av Unisinos, 950, São Leopoldo, - RS, CEP 93022-000, Brazil, elpaiva@mercado.unisinos.br

Since Porter (1980) proposed the value chain, new competitive needs have leaded companies to develop new functional arrangements including manufacturing activities. Presently, manufacturing management ranges not only the production system itself but we may also include R&D, logistics, and services. This paper seeks to identify how two central aspects are related in a proposed production value chain: organizational

Rev 3-7-01103

knowledge and manufacturing strategy. We address this issue analyzing knowledge creation/integration in three case studies developed in industries with different environmental dynamism.The first results indicate different types of knowledge throughout the value chain: strategic knowledge, coordination-related knowledge and solving-problem knowledge.

The role of learning for manufacturing improvement, Pär Åhlström, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden, par.ahlstrom@hhs.se, Anders Karlsson, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

Learning is needed to improve manufacturing performance. The link between learning and manufacturing improvement is, however, not often addressed in literature. The paper examines the role of learning for manufacturing improvement, using a sample of fifteen case studies in manufacturing companies from various industries. The study is based on a framework for learning in a manufacturing context. The major finding is that a learning capability, paradoxically, is both a pre-requisite for manufacturing improvement and a consequence of improved manufacturing performance. The cases are used to illustrate this finding and the mechanisms through which increased learning capabilities help drive manufacturing improvement.

Competing Through Manufacturing Capabilities: Empirical analysis of the Spanish case, Lucia Avella, Facultad de Ciencias Económicas y Empresariales, Avda. Cristo s/n, 33071 Oviedo, Spain, lavella@econo.uniovi.es, Esteban Fernández, Facultad de Ciencias Económicas y Empresariales, Avda. Cristo s/n, 33071 Oviedo, Spain

The main objective of this work is to test the first paradigm of Voss (1995), based on the work of Skinner (1969), which suggests that firms improve their competitiveness through aligning manufacturing capabilities with the requirements of the market place. In this work we therefore consider that production managers give greater importance (or emphasis) to those competitive priorities or manufacturing capabilities that are really demanded by the market, that is to say, that meet customer needs. Thus, the achievement of advantages or strengths in those competitive priorities should lead to the attainment of superior performance and, consequently to the improvement in firms’ competitiveness. This is the argument underlying the concept of production or manufacturing competence (Cleveland et al., 1989; Vickery, 1991; Kim and Arnold, 1992; Vickery et al., 1993; and Narasimhan and Jayaram, 1998). In this sense, this paper empirically tests this research question (influence of production competence on firms’ competitiveness) in a sample of Spanish firms (a) using, for this aim, the structural equations technique, (b) exploring the existence of sectorial differences in this influence, and (c) analyzing the effects (on firms’ competitiveness) of the four manufacturing capabilities, both individually and considered together. In this way, the paper aims to improve other exploratory research we have previously performed.

A Competence and Resource-based Architecture for Operations Strategy, John Mills, Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, jfm@eng.cam.ac.uk, Ken Platts, Centre for Strategy and Performance, Institute for manufacturing, University of

Rev 3-7-01104

Cambridge, Mike Bourne, Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge

Resource-based and competence or capability theory are closely related. Yet there is little in the business or operations strategy literature that explicitly integrates them. In this paper we propose an architecture that assembles theory from both literatures. The architecture distinguishes between 'observable' competences, those that customers recognise, like rapid product delivery from 'unobservable' those that support 'observable' competences yet are usually invisible to outsiders, like rapid knowledge acquisition and deployment. The architecture enables managers and researchers to visualise a more fine-grained configuration of connected competences and resources amenable to structured improvement actions and empirical study.

Su-17-1 Session Title :Competition and performance Session Chair:Session Time and Place: Sunday, April 1, 2001, 10:00-11:30, Kenya

Performance Measurement Implementation: perceptions of the main reasons for success and failure, Mike Bourne, Centre for Business Performance, Cranfield School of Management, Cranfield MK43 0AL, UK, m.bourne@cranfield.ac.uk, Andy Neely, Centre for Business Performance, Cranfield School of Management, Cranfield MK43 0AL, UK

It has been claimed that 70% of performance measurement implementations fail (Lewy & du Mée, 1999). A separate study using action research interventions found that out of the six cases, only three went on to implement the measures designed and agreed (Bourne et al, 1999). With these two exceptions, much of the work on the success and failure of performance measurement initiatives has come from the experience and reflections of practitioners.

This paper presents the findings of an interview study of 25 managers, from 10 different organisations, who had been directly involved in attempting to implement performance measurement systems using a common management process. The analysis of the results revealed that there were two main factors perceived as driving the implementation and four main perceived barriers.

Customisation and its Impact on Plant Performance an Empirical Investigation, Marek Szwejczewski, Cranfield School of Management, Cranfield, Bedford MK43 0AL, UK, M.G.Szwejczewski@cranfield.ac.uk, John Mapes, Cranfield School of Management, Cranfield, Bedford MK43 0AL, UK

The manufacture and supply of customized products has been seen as a way of differentiating a manufacturing company from its competitors. However, the production of customized products is considered to be a far more difficult task than the provision of standard goods.

This paper will present the results of a study of the impact of customization on manufacturing plant performance. The research is based on a large survey of manufacturing plants. The paper will show the extent to which delivery performance, Rev 3-7-01

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quality, productivity and plant flexibility are impacted by the level of customization a plant has to deal with.

Strategic Responsiveness, D Kritchanchai, Department of Industrial Engineering, Mahidol University, Salaya, Nakornparthom, Thailand, dkritchanchai@hotmail.com, B L MacCarthy, Department of Industrial Engineering, Mahidol University, Salaya, Nakornparthom, Thailand

Responsiveness is a new emerging competitive performance aiming at competitive advantage on time and ability to respond. The authors' previous work has clarified the meaning of this key performance at operational level - order fulfillment process (Kritchanchai et al, 1999 and MacCarthy et al, 2000). However the previous work has pointed out that not every company is aiming at achieving responsiveness. An appropriate level of responsiveness for their firms is what they are looking for. The paper discusses two strategic decisions - 'Responsiveness direction' and 'Level of response'- with respect to relevant literature and the empirical results in the previous work. Factors that influence responsiveness direction are identified. A matrix for level of strategic response is presented. The paper also discusses the relationship between responsiveness and other existing strategic performance objectives. Finally the responsiveness analysis and auditing process at strategic and operational level in a firm is developed.

Defining World Class Manufacturing: Examining "America's Best" Plants, Morgan Swink, Eli Broad College of Business, Michigan State University, East Lansing, MI 48824-1122, USA, Swinkm@msu.edu, Ram Narasimhan, Eli Broad College of Business, Michigan State University, East Lansing, MI 48824-1122, USA

This paper examines the fundamental dimensions underlying best practices in manufacturing plants. The study uses data from a survey of past winners of the “America’s Best” competition held each year by Industry Week. We explore plant profiles as well as relationships among eight major practices identified. The results of the analysis suggest that plants progress through a series of capability developments to achieve higher and higher levels of performance.

SU-17-2 Session Title: Strategic changes Session Chair: Nallan C. Suresh, 325K Jacobs Management Center, School of Management, State University of New York, Buffalo, NY 14260-4000, USA, ncsuresh@buffalo.eduSession Time and Place: Sunday, April 1, 2001, 2:00-3:30, Kenya

Improving the Flexibility of Manufacturing Operations: Inhibitors and Key Success Factors, Adagoke Oke, Cranfield University, School of Management, Cranfield, Bedforshire, MK43 0AL, UK, a.oke@cranfield.ac.uk

The importance of flexibility to manufacturing companies operating in turbulent market environment has been widely discussed. However, many manufacturing companies have failed in their attempts to increase the levels of flexibility of their manufacturing operations. This paper reports the results of a major survey and case studies of UK manufacturing plants. The study identifies the mechanisms, which if effectively

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implemented are capable of giving manufacturing companies, the required high levels of flexibility. The paper identifies the potential problems of implementation and discusses suitable strategies that can be employed to overcome these problems to achieve high levels of manufacturing flexibility.

Aspects on manufacturing strategy: a case study at Saab automobile, Sweden, Mats Winroth, Linköping University, Jönköping School of Engineering, P.O. Box 1025, SE-551 11 Jönköping, Sweden, mats.winroth@ing.hj.se, Mats Björkman, Jönköping School of Engineering, P.O. Box 1025, SE-551 11 Jönköping, Sweden

Saab Automobile, Sweden, was a small independent car manufacturer in the prestige segment, which during the last ten years gradually has become fully owned by General Motors. The Saab brand and cars fitted well into the market strategy of GM.

Findings from a series of interviews with people at different positions within manufacturing are presented in the paper. Questions dealt with are: experiences so far from becoming a part of GM, the time horizon when planning new factories, ideas regarding the whole supply chain and cooperation with subcontractors. For example: the main strategy is now to focus on manufacturing processes with limited complexity and on straight assembly lines. This is a shift from earlier strategies.

Creating 'stories': analysing the history of change, Zoe Radnor, University of Bradford, Management Centre, Emm Lane, Bradford, West Yorkshire BD9 4JL, UK, z.radnor@bradford.ac.uk

There is little doubt that the majority of manufacturing organisations has undergone change over the past twenty years. But, how similar are the changes that they have experienced? Which facets of the organisation have had to endure the majority of the changes? This paper attempts to answer these questions. The history of change of four major blue-chip organisations is discussed considering the period from the 1980 - 1995. It will show that all companies aimed to get closer to market and customer by restructuring the company and working through the people to change the way they did things, how and when they did it by introducing a number of initiatives.

Impact of Organizational Improvement Strategies on Firm Performance: A Critical Appraisal, Taxonomy and Review of Selected Empirical Research, Nallan C. Suresh, 325K Jacobs Management Center, School of Management, State University of New York, Buffalo, NY 14260-4000, USA, ncsuresh@buffalo.edu, Canan Kocabasoglu, , School of Management, State University of New York, Buffalo, Bonnie Glassberg, , School of Management, State University of New York, Buffalo.

The objective of this paper is to summarize the literature drawn from: a) within-firm improvement strategies based on total quality management (TQM), Electronic Data Interchange (EDI), Information Technology (IT), Concurrent Engineering (CE) and Business Process Reengineering (BPR), and b) across-firm improvement along the lines of supply chain management (SCM), and their impact on firm performance. The paper identifies commonalities and differences, and provides a critical appraisal of research methods utilized in these diverse areas. The overall objective of the paper is to isolate or Rev 3-7-01

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distill a set of generic research methods which may be utilized in studies of the impact of organization improvement programs.

SU-17-3 Session Title: Tools for Analyzing Operations StrategySession Chair: David Barnes, Open University, Business School, Walton Hall, Milton Keynes MK7 6AA, UK, d.l.barnes@open.ac.ukSession Time and Place: Sunday, April 1, 2001, 4:00-5:30, Kenya

The balanced scorecard as a communication protocol for managing across intra-organisational borders, Michael Shulver, Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK, michael.shulver@wbs.warwick.ac.uk, Neelesh Antarkar, Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK

The Balanced Scorecard is commonly associated with the area of performance measurement. However the Scorecard framework, and the processes associated with Scorecard design are more fundamentally concerned with communication and articulation of strategy at operational levels. This role for the Balanced Scorecard, specifically the use of the Scorecard to communicate operations strategy across intra-organisational borders is the subject of this paper. Research carried out in two large multi-national organisations will be presented. The research shows how a modified Scorecard design process allows firms to rationalise strategic communication so that only strategically relevant information is transmitted in the strategic control system.

A Process Scorehand approach to manage the Operations strategy. Application to the Supply Chain Management of the Tile Sector, José Antonio Heredia, Dpto Tecnología, Universitad Jaume I, 12071 Castellón, Spain, heredia@tec.uji.es

Once the Strategy of a company has been made explicit using the Balanced Scorecard, it remains to deploy the strategic objectives through all the organization. In this paper, we propose an approach to deploy the operations strategic objectives through the operations processes hierarchy to more operational ones, maintaining the alignment of the activities with the overall strategy.

The result is a scorecard for each process showing, explicitly, cause and effect relationships between operational objectives and its influence in the strategic ones.

This approach has been validated and applied, through workshops and real implementations, with success in the supply chain management process of the Spanish tile sector.

Testing a Make-or-Buy Process, Laura Cáñez, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, lec25@eng.ac.uk, David Probert, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, Ken Platts, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK.

The make-or-buy question represents a fundamental dilemma faced by many companies. Existing make-or-buy approaches seem to be helpful in shaping make-or-buy strategy. However, they are generally too highly aggregated to address specific make-or-buy decisions. In order to bridge this gap, a make-or-buy process has been developed and Rev 3-7-01

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tested. This process was designed around the principles of Multi-Attribute Decision Making (MADM) in order to compare the in-house capabilities with the supplier capabilities. This paper presents the tested process and discusses the learning from its application in a number of in-company case studies.

The utility of the Hayes and Wheelwright four stage model in a UK context, David Barnes, Open University, Business School, Walton Hall, Milton Keynes MK7 6AA, UK, d.l.barnes@open.ac.uk, Frank Rowbotham, Open University, Business School, Angela Zvesper, Open University, Business School

This paper reports on research aimed at operationalizing the Hayes and Wheelwright 4-Stage model. This model has classic status in operations management but seems little tested in practice. A questionnaire derived from the model was administered in a large-scale postal survey of managers in a variety of UK manufacturing and service organisations. Analysis of the responses indicates that managers seem to have difficulty in classifying the strategic role played by their operations in an internally consistent and coherent manner. Although the questionnaire itself may have shortcomings, the results question the utility of the model and raise concerns about its validity.

MO-17-1 Session Title: Research in Operations StrategySession Chair: Ken Platts, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, kwp@eng.cam.ac.ukSession Time and Place: Monday, April 2, 2001, 10:00-11:30, Kenya

In Search of a Methodology for Strategy Development Considerations for a Network Organization, Susana Carla Farias Pereira, Rua Aimberê no. 1775, apto. 62, Sumaré, São Paulo, SP, CEP 01258-020, Brasil, sfpereira@gvmail.br, Luís Henrique Pereira, Adriane, A.F.S.L. de Queiroz

Many companies are suffering the impact of market changes, what especially reflects in the inefficiency of their supply chain. As a result, distribution strategies are becoming the main source of competitive advantage in this global market. The advent of a network perspective has increased the debate about the relevance of extrapolating organizations' borders and considering the integration of the whole chain. This paper discusses concepts and requirements necessary for the development of a network strategy and proposes a method that may be used as a frame of reference for the development of such strategy in highly competitive environments.

Competitive Priorities, Competencies, and Capabilities: Theoretical and Empirical Implications, Xenophon Koufteros, 220 SE. 2nd Avenue, Fort Lauderdale, FL 33301, USA, kouftero@fau.edu

Most would agree that researchers can investigate manufacturing strategy from a content and a process point of view. A lot of effort has been expended in identifying the content of manufacturing strategy and in developing frameworks for the process of manufacturing strategy. Unfortunately, there is still a lot of confusion in regards to both the content and process of manufacturing strategy, especially when it relates to Rev 3-7-01

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measurement of constructs and testing of hypotheses. For example, while researchers attempt to measure priorities, they capture competitive capabilities or vice versa. This research presents a framework for manufacturing strategy process and clearly identifies the differences between competitive priorities, competencies, and capabilities.

Building Capabilities or Rigidities? Perspectives on POM's Theoretical and Methodological Trajectory, Michael Lewis, Warwick Business School, UK, michael.lewis@warwick.ac.uk, Nigel Slacks, Warwick Business School, UK

European academics were asked which works (a) had most strongly influenced the development, and (b) offered clearest insight into the future direction, of POM. The 'heritage' findings reinforced the dominance of systems perspectives on factory operations. Views on the future were fragmented but worrying/challenging trends were discernible. The refinement of extant techniques will continue but in order to understand a broader range of service operations and incorporate conceptual uncertainty into strategic analyses, traditional theoretical and methodological capabilities may become more and more inappropriate. The paper concludes by discussing whether we are seeing the emergence of a 'schism' in the field.

Researching Strategic Processes, Ken Platts, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK, kwp@eng.cam.ac.uk

It is widely accepted that strategy research is divided into 'content' and 'process'. Of these general areas, there is much more activity in 'content' than in 'process'. 'Process' research does not lend itself easily to survey methodologies, and this may make researchers reluctant to engage in it. This paper suggests that part of the problem is attempting to carry out research within the discipline of 'science', and that taking an 'engineering' approach may be more fruitful. It sets out a framework for understanding strategic processes, and presents a methodology that has been successfully applied in researching various strategic processes.

Track: Product and Process Design

Track Chair: Mary J. Gander, College of Business, Winona State University, Winona, MN 55987-5838, mgander@vax2.winona.msus.edu

MO-18-1 Session Title: Issues in Product Design and DevelopmentSession Chair: Kim Snyder, Winona State University, ksnyder@vax2.winona.msus.eduSession Time and Place: Monday, April 2, 2001, 2:00-3:30, Salon B

Effectiveness of Design/Manufacturing Integration Mechanisms in Product Development: A large-Sample Empirical Test, Mohan V. Tatikonda, University of North Carolina at Chapel Hill, NC 27599-3490, mohan_tatikonda@unc.edu

This paper presents an empirical investigation of the effectiveness of mechanisms used to integrate design and manufacturing engineers during product development project execution. Integration mechanisms evaluated include computer-based integrative tools, Rev 3-7-01

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project leader strength and personnel performance evaluation. Effectiveness is assessed in terms of project operational outcomes and strategic results. A cross-sectional sample of one-hundred new product development projects is employed to test specific direct and contingent effectiveness hypotheses. The findings provide practical guidance to development organizations, and also suggest directions for further theory development and empirical analysis of integration phenomena in technological innovation contexts.

Modeling the Front End of the New Product Introduction Process for Rapid Product Development, Ashok K. Kochhar, Aston University, Birmingham B4 7ET, UK, A.K.Kochhar@aston.ac.uk, Mark Williams, Aston University, Birmingham, UK

In order to remain competitive, companies must organize the development of new products around an effective and manageable product introduction process (PIP). Frequently, the product introduction process is an ad-hoc collection of separate procedures that follow one after another with responsibility being passed on until a product is eventually produced and introduced into the market. This situation is usually worse in the vital early stages of development before the product has been physically defined. This paper describes the development, industrial testing and validation of a reference model, which covers the stages from the development of a product strategy through to the formal approval of a new product for its detailed design and manufacture. It can be used for the effective management of the fuzzy front end of the new product introduction process. The paper concludes with a discussion of the application of the Reference Model to a case study company.

Examining the Effects of Postponement, Commonality and Inventory Positioning on a Multi-Stage Manufacturing System, Robert B. Hasbrouck, College of Charleston, Charleston, SC 29401, hasbrouckr@cofc.edu, Jose V. Gavidia, College of Charleston, Charleston, SC 29401

This paper examines the underlying relationships between manufacturing complexity and inventory positioning in a simulated environment. Six distinct product family structures will be presented each containing various levels of complexity reduction techniques (i.e., commonality and postponement). The inventory positioning variable offers four distinct holding options. The first three options are considered centralized positioning strategies and hold inventory at one of the three stages. The fourth inventory positioning strategy holds inventory across all three stages and is considered decentralized. All experiments are measured using aggregate inventory investment cost. The results of this experiment indicate that the choice of postponement strategy (early vs. late) is a significant factor in determining inventory investment cost. However, the use of commonality did not provide a significant difference in inventory cost. Finally, the decentralized inventory positioning strategy produced similar results to the centralized end-item holding strategy under high demand variance.

MO-18-3-2 Session Title: Issues in Product and Process DesignSession Chair: Keith Goffin, Cranfield School of Management, K.Goffin@Cranfield.ac.ukSession Time and Place: Monday, April 2, 2001, 4:00-5:30, Kenya

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Managing Trade-Offs in Buyer-Supplier Partnerships: Implications of the Design and Production of a New Car Model, Peter Fredriksson, Chalmers University of Technology, SE-412 96 Goteborg, Sweden, pefr@mot.chalmers.se, Fredrik von Corswant, Chalmers University of Technology

Buyer-supplier partnerships are often highlighted as the panecea for companies’ sourcing of resources. But how do the motives and conditions for partnership change during the various phases of the product life cycle? This paper used a network approach to assess the partnership concept from design to production. The empirical data is based on a longitudinal case study involving a car manufacturer and its most important system suppliers. Our main conclusion is that trade-offs inherent in activity structures and resource ties should be differently managed during the design and production phases. Organizing principles and capability requirements for partnership companies are outlined.

Measuring Innovation Performance: A Study of UK and German Manufacturing Companies, Kieth Goffin, Cranfield School of Management, Cranfield, Bedford MK43 0AL, England, UK, K.Goffin@Cranfield.ac.uk, Rolf Pfieffer, Cranfield School of Management, UK

In today’s competitive business environment, most manufacturing companies are attempting to improve their innovation performance—and develop more new products and processes. However, determining the innovation performance of a company is difficult and it is not clear which measures are most appropriate. Research using a combination of survey and case study approaches studied innovation management in the manufacturing sector in Germany and the UK. The results show how innovation performance is currently measured and the need for improvement in this area. Since, it is often said, “If you can’t measure it,…then you can’t measure it,” the research has strong implications for both practitioners and researchers.

Time and Resource Characteristics of Radical New Product Development (NPD) Projects and their Dynamic Control, Andrea B. Dragut, Eindoven University of Technology, Dept. of Technology Management, 5600 MB, Eindhoven, a.b.dragut@tm.tue.nl, J. Wil M. Bertrand, Eindoven University of Technology

In many industries, new product innovation rate has increased while the control time for new product introductions has became crucial for the success of new products in the marketplace. Using recent studies from high tech industries, we formulated a scientific model of a control process useful for managing the NPD products under tight time constraints. Delivery time of the project, resources, the project and its control are organized to solve the uncertainty in the functional characteristics of the new product through repeated internal adjustments and interactions with customers.

MO-18-3-3 Session Title: Process Design IssuesSession Chair: Mary Gander, Winona State University, mgander@vax2.winona.msus.eduSession Time and Place: Monday, April 2, 2001, 3:00-4:30, Kenya

Rev 3-7-01112

Manufacturing Verification at Texas Foundry, Joseph G. Ormsby, Dept. Mgmt, Mktg, and International Business, Stephen F. Austin State University, Nacogdoches, TX 75962-9070, jormsby@sfasu.edu, Matt Lindsey, Stephen F. Austin State University, Kathy Bates, Stephen F. Austin State University

Texas Foundry, a major supplier of parts to the automotive industry, uses a manual operation during the steel-casing process. Quality of products produced is a direct result of how effectively this manual operation is performed or whether it is performed at all. This paper demonstrates development of procedures to verify that foundry personnel performed critical steps in the manufacturing process. Through the use of these procedures, Texas Foundry has saved approximately $50,000 in manufacturing costs per year.

Delivery Time Reduction Framework Development for Emergency, Make-to-Order Replacement Parts, Joyce M. Hoffman, Dept. Mgmt, Mktg, and International Business, Stephen F. Austin State University, Nacogdoches, TX 75962-9070, Jhoffman@sfasu.edu, Joseph G. Ormsby, Stephen F. Austin State University

Typical make-to-order organizations are prohibited from holding finished good inventory due to the extraordinary costs involved in manufacturing and purchasing; however, firms may be overlooking a means of time-based competitive advantage. This research paper develops a framework for identifying specific inventories that should be maintained in order for a make-to-order industrial gear manufacturer to compete based on reduced delivery lead-time. The customer focus is emergency repair replacement parts. The organization was able to substantially reduce procurement lead-time that translated into manufacturing lead-time reduction of 48-83% without any sacrifice of product quality.

Integrating Simulation into Manufacturing System Development: A Methodological Framework, Lars Holst, Dept. Mechanical Engineering, Lund University, SE-221 00 Lund, Sweden, lholst@robotics.lu.se, Gunnar Bolmsjo, , Dept. Mechanical Engineering, Lund University, Lars Randel, , Dept. Mechanical Engineering, Lund University

Today, discrete-event simulation (DES) used in manufacturing, has become widespread, but far from all companies use the technology. Companies not using DES lack methodologies for introducing and integrating simulation into their manufacturing system development process. Moreover, companies that use DES often do it on a one-shot basis, i.e., as a trouble-shooting tool when a specific problem is to be solved. In those cases, simulation is often used as a stand-alone tool, reflecting a low level integration. On the other hand, simulation research on integration aspects often deals with specific functional or data-level issues, such as integrating and connecting simulation to other systems and tools, rather than structural and hierarchical integration aspects as part of a methodological approach. Furthermore, simulation use is rarely seen from a strategic point of view. This paper focuses on methodologies for integrating discrete event simulation into the development of manufacturing systems, and presents a framework for a structured and systematic way of dealing with integration aspects based on industrial experience.

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Scheduling Jobs on Parallel Machines with Sequence-Dependent Family Setup Times, Dong-hwan Eom, Dept of Industrial Engineering, Korea University, 5-1, Anam-dong, Sungbuk-ku, Seoul, 136-701, Korea, rokeom@hanmail.net

This paper proposes an efficient heuristic to minimize the total weighted tardiness of a set of tasks with known processing times, due dates, weights and family types for parallel machines. A two-phase heuristic is presented for minimizing the total weighted tardiness. In the first phase, we grouped jobs in accordance with their due date which becomes a family. In the second phase, a Modified Apparent Tardiness Cost with Setup (MATCS) and Tabu search methods, are applied to find optimal schedule. 

Track: Quality/Process Improvement and Management

SA-19-1 Session Title: Managing Supply Chain Quality Session Chair: Steffen Froehlich , Fraunhofer Institute, froehlich@iff.fhg.deSession Time and Location: Saturday, March 31, 2001, 10:45-12:00, Toga

6-Sigma Deployment Throughout the Supply Chain, Steve Martin, Coventry University, s.martin@coventry.ac.uk

To-date deploying the philosophy and practices of 6-sigma has been largely confined to the truly global manufacturing organizations. However if you are dependent on suppliers for even a small percentage of the parts used you cannot fail to be aware that inefficiency at their end jeopardizes your performance. So even if as a company you employ 6-sigma successfully, you can effectively only continue to improve if your suppliers do. This paper will describe the work that is being carried out at Coventry with industry sector partners to develop a training program to support 6-sigma deployment throughout the supply chain.

Quality Attributes Under the Users’ and Suppliers’ Points of View Considering the Vehicles’ Maintenance Services at the Empresa Brasileira de Correios e Telegrafos, Jose R. de Farias Filho, Fluminense University, Mara T. Salles, Fluminense University, mara@civil.uff.br, Claudia de Oliveira, Fluminense University, Marcio F. Nunes, Fluminense University

The present work is a case about the quality attributes from the users’ and suppliers’ point of view, considering the Vehicles’ Maintenance Services at the Empresa Brasileira de Correios e Telegrafos, using GAP’s and SERVIQUAL methodology. We did a field research, using questionnaires, purposing to investigate the declared necessities of the users from the maintenance sector about the way they consider important to a good information service. The same research was applied on the suppliers of the same service. Among the 36 attributes of quality research, only one was confirmed as common opinion.

Rev 3-7-01114

Holistic Quality Control Through Individual Control Loops, Steffen Froehlich, Fraunhofer Institute, froehlich@iff.fhg.de, Ralph Seelmann-Eggebert, Fraunhofer Institute

Constant process and product flow can be achieved through a holistic planning and control concerning the entire logistic chain. Tools to ensure the quality of products and processes have been developed in a three-year research study. The methods of the classic Quality Function Deployment have been upgraded to meet the challenge of producing customer unique products. To control the newly introduced functions and the quality of process and products forward oriented control loops have been implemented. Applying this method individual production to low costs for production and customer becomes possible.

SA-19-2 Session Title: Quality Awards, Certification and Performance Session Chair: Maria J. Alvarez-Gil, Universidad Carlos III, catinaag@eco.uc3m.esSession Time and Location: Saturday, March 31, 2001, 2:00-3:30, Toga

Baldrige is From Venus; ISO is From Mars, Marilyn Smith, Winthrop University, smithm@exchange.winthrop.edu, Tyrone Crossland, Solectron Technology, TyroneCrossland@NC.SLR.com

Several authors have done comparisons of the Baldrige criteria for performance excellence and the ISO 9000 Standards. Those papers have generally presented an objective comparison based on checking this is covered there, etc. For example the ISO 9001: 2000 standards address: management responsibility; resource management; product and/or service realization; and measurement, analysis, and improvement. However, a checklist comparison shows most of the overlap with the Criteria is in management responsibility. Why? First, this paper presents a review of the previous comparisons. Then, a new comparison is presented that is based on a more subjective analysis, which delves into their respective purposes, design, and uses.

Evaluation of the Management of Brazilian Educational Institutions Using Excellence Criteria, Valeria M. Pereira, Universidade Federal Fluminense, flexcor@nitnet.com.br, Jose R. de Farias Filho, Universidade Federal Fluminense University

In this paper, we focus on the development of an evaluating tool for the management of the educational system adapted to Brazilian conditions. This study is based on criteria developed from the comparison of criteria such as the Malcolm Baldrige National Quality Award – 2000 Education Criteria (USA) and the National Quality Award (Brazil). It is of vital importance that the industrial tools can be adjusted to and used in educational institutions, working as a guide to a form of management which goes beyond the use of mere common sense and intuition, consequently, improving their processes, productivity and final results.

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Quality Awards and Performance Ratios: An Empirical Analysis, Maria J. Alvarez-Gil, Universidad Carlos III, catinaag@eco.uc3m.es, Maria J. Montes, Universidad Carlos III, D. Pena, Universidad Carlos III

This study explores the relationship between quality awards and performance measurement, as reflected in the ratios of the firm. Our contribution resides on the selection of rations and time framework, which differ from those considered by previous papers. For this purpose, the winners of Malcolm Baldrige National Quality Award and European Quality Award of EFQM are analyzed. We hypothesize that firms that have won quality awards will show better liquidity and profitability ratios than other companies. Data are drawn from COMPUSTAT database and information disclosed by the companies on Internet. Statistical tools are employed to identify trends and changes in the time series.

A TQM Approach Used to Implement ISO-9002 into a Pump Manufacturing Company in South Africa, Bruce R. Smit, Technikon Witwatersrand, bruces@twrinet.twr.ac.za

This paper describes the implementation of ISO 9000 into a South African Company. Several options were analyzed, but the company opted to do it themselves, using and external facilitator. The approach taken was that of implementing a TQM project with change management and training as key issues. The project approach taken to the system, the critical success factors for implementation, the steps taken, the self-development of procedures and progress along the way are presented.

SA-19-3-1 Session Title: International Quality Practices: Empirical Studies Session Chair: Luis Solis, Instituto de Empresa, Luis.Solis@ie.eduSession Time and Location: Saturday, March 31, 2001, 4:00-5:30, Toga

Quality Management Infrastructure Practices in Manufacturing and Service Companies in Spain, Luis Solis, Instituto de Empresa, Luis.Solis@ie.edu

In this paper, we use the preliminary results of an ongoing research study to compare the quality management infrastructure practices and quality results between Spanish manufacturing and service organizations. Data were collected in 60 service and 4 manufacturing companies. The results presented here are focused on seven critical factors of quality management infrastructure practices –quality leadership, strategic quality planning, employee training, employee involvement, employee empowerment, employee reward and recognition, and information quality availability- and company quality results.

Preliminary Findings from a Longitudinal Survey of the Implementation of Work Organization Changes in South African Manufacturing Firms, Anton Grutter, University of the Western Cape, agrutter@uwc.ac.za

This paper reports on research conducted at firms participating in the Workplace Challenge, a project sponsored by the South African government to support manufacturing firms to introduce shop floor work organization changes. The research model, which relates structural changes and work practices to operational performance on a monthly bases over a 2 year period, as well as preliminary findings will be presented. Rev 3-7-01

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Business Profile Benchmarking: Case Studies in POMS Improvement in Six Australian SMEs, John F. Dalrymple, Center for Quality Management Research at RMIT, john.dairymple@rmit.edu.au

This paper reports on a study of 32 small and medium enterprises in Northern Metropolitan Melbourne, which agreed to participate in a business profile benchmarking study. The program was in three phases, the last of which is reported here. This phase was to assist six of the companies implement improvements in operations management based on the strengths and weaknesses identified using the international business profile-benchmarking instrument. The firms come from a variety of sectors and range 15 to 80 employees. The nature of the improvement projects and the results achieved will be reported.

Organizational Quality Practices in Airlines’ Operations Function, Toto Hardiyanto, Cranfield University, thardiyanto@cranfield.ac.uk

Airline business activities consist of sales and marketing, engineering and maintenance, flight operations and ground services. For the purpose of this study the operations activities become a focus, as it is a core activity of airlines’ operational processes that can make a contribution to the success or failure of delivering quality in the product/service direct to the customer. The study was conducted through literature and field studies based on quality management practices of certain airlines in Southeast Asia and Western Europe. It was found that there are seven critical success factors of quality practices in the airlines’ operations, which should be managed differently regarding to the airline organization’s context in order to keep up their operations effectiveness and efficiency at certain level.

SA-19-3-2 Session Title: Quality Optimization Session Chair: Marvin Gonzalez, Instituto de Empresa, Marvin.Gonzalez@ie.eduSession Time and Location: Saturday, March 31, 2001, 4:00-5:30, Executive Suite 2

An Economic Assessment of Process Robustness, Rita Di Mascio, University of Western Sidney, r.dimascio@uws.edu.au

This study aims to provide an economic measure of process robustness in the face of plant and market uncertainty. It will do so by combining Taguchi-based economic indices of quality, which have been developed recently, with Monte Carlo simulation. The result is a mathematically simple yet powerful technique that can be applied to simple linear and complex nonlinear systems. It allows a comparison of alternate processes, whether they differ in sequence of activities, tuning constants or control systems.

Robust Economic Control Chart Design, Kevin Linderman, University of Minnesota, klinderman@csom.umn.edu, John C. Anderson, University of Minnesota, janderson@csom.umn.eduRev 3-7-01

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Designing a control chart involves making fundamental decisions about the control chart parameters. Economic designs select control chart parameters based on economic criteria. However, there has been limited success in implementing economic designs. This research develops the concept of Robust Economic Design of Control Charts where multiple economic and process scenarios are considered in control chart design. By developing a robust optimization technique for economic control chart design, we hope to promote industrial implementation of economic designs of control charts. The effectiveness of this technique is illustrated through examples and sensitivity analysis.

Six Sigma: An Optimal Solution Using a Simulation Approach, Marvin Gonzalez, Instituto de Empresa, Marvin.Gonzalez@ie.edu; Gioconda Quesada, University of Toledo

Six-sigma quality describes a production process of highly robust quality; one that has very low variability compared with the tolerance limits specified for the product being made. Achieving six-sigma quality ensures both dependable quality and production efficiency. It is applicable not only to the production of goods and services, but to support business processes as well. In this paper, six-sigma is developed using simulation process in order to understand better the relationships among variables involved in a manufacturing process. It is argued that six-sigma quality thinking is a mean of robust management; one that is able to design a quality system using the variables that are generating high performance and low variability in the process

A New Model for Traceability Evaluation Based on Cost-Benefit Analysis, FMECA Principles, and Fuzzy Sets Techniques, M. Lando, University of Naples Federico II, S. Riemma, University of Naples Federico II, M. Savino, University of Naples Federico II, savino@cds.unina.it

Quality certification according to ISO 9000 standards requires that firms for their products have to be able to track every job, assembling steps, and equipment needful to realize it. Another aspect of traceability systems –not required by ISO 9000 – is the possibility of the firm, for each type of product, to locate every delivered ones on which analysis and/or corrective actions have to be made, due to an unconformity found on a certain component or on a certain job (external traceability). This last feature of a traceability system can be able to give real advantages in terms of customer satisfaction, safety and firm image, therefore its establishment is often related to the high costs due to the startup of dedicated procedures for parts identification, information systems, human resources, etc. The best choice in this case is to undergo to this type of traceability procedure with a set of components of the product that, from an analysis of the bill of materials, are recognized as critical in terms of certain predefined parameters such as security, cost, product functionality, etc. In this work we wish to give a practical tool useful to decide, for a technological complex product, which components have to be include in the traceability system.

SU-19-1 Session Title: Performance Measurement Systems Session Chair: Paulino G. Francischini, Escola Politechnica da Universidade de Sao Paulo

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Session Time and Location: Sunday, April 1, 2001, 10:00-11:30, Toga

Maintaining Dynamic Performance Measurement Systems, Mike Kennerley, Cranfield School of Management, m.kennerley@cranfield.ac.uk, Andy Neely, Cranfield School of Management, a.neely@cranfield.ac.uk

Although it has long been recognized that performance measurement has an important role to play in the efficient and effective management of organizations, it remains a critical and much debated issue. Many organizations are investing considerable amounts of resource implementing measures that reflect their performance objectives. However, despite the rapidly changing environment in which companies operate, little consideration has been given to the way in which they can maintain an appropriate measurement system. This paper reports research that identifies the issues that facilitate and inhibit the change of performance measures and present case examples of the way in which organizations can maintain dynamic measurement systems.

Object-Oriented Production Structures to Improve Manufacturing Performance, Peter Letmathe, Ruhr-Universitat Bochum, Peter.Letmathe@ruhr-uni-bochum.de

An object-oriented production structure provides clearly defined production stages as a basis for decentralizing manufacturing planning and control. Rules of exchanging goods and information can be derived from the main principles of object-oriented programming. These principles are class design, inheritance, polymorphism, encapsulation and modularity. Primary and secondary attributes characterize the current state of a production stage. This state can be changed with formal methods and operations. The main advantages of an object oriented production structure are an improved manufacturing performance, a higher learning rate, and knowledge sharing. The presentation of the concept will be combined with case studies of German companies.

A Composite Score for Measuring Continuous Improvement, Narendar Sumudakas, University of Hartford, Sumukadas@mail.harfortd.edu

The term continuous improvement (CI) of operations suggests time-over-time rather than one-time, improvements and a snowballing process. CI can be witnessed in the sum total of improvements to plant conditions, incremental or sizeable, over a long time period. Important, also, is the continuity of improvements even over smaller periods. Additionally, a pattern of accelerating improvements better attests to snowballing. This paper proposes a composite score combining (i) total improvement, (ii) time-over-time improvement, and (iii) accelerating improvement. The CI score is tested empirically to see how the three component measures are correlated with the composite, and with each other.

Performance Indicators of B2C Companies in Brazil, Pandolfi Marcos, Escola Politecnica da Universidade de Sao Paulo, Paulino G.Francischini, Escola Politecnica da Universidade de Sao Paulo

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Critical Success Factors (CSF) and performance indicators adopted by some of main B2C companies in Brazil. The work seeks also to verify: (a) the adequacy of the interrelationship between CSFs and the strategic objectives, suggesting whenever applicable new CSFs.; and (b) evaluate the pertinence between the performance indicators and the adopted or suggested CSFs. Data from some of the Brazilian main B2C companies are gathered and compared in order to achieve the above purposes.

SU-19-2 Session Title: Organizational Behavior Quality Issues in Public and Private Sectors Session Chair: Arturo J. Fernandez-Gonzalez, ETS Ingenieros Industriales Vigo, ajfdez@uvigo.esSession Time and Location: Sunday, April 1, 2001, 2:00-3:30, Toga

Quality of Life: Different Points of View, Felipe Graeml, felipe.graeml@per.com.br, Guillermo Caprario, Rolf Erdmann

What is quality of life for some one may not be for another. Some people attribute more value to some characteristics that are not valorized by others. Most of the quality of life and social development indicators don’t change in population preference even though they change in scale and reference from one to another person. The local management of a city need to be capable of identify this differences of opinions and lead projects that satisfy most different wishes in a widest way possible.

A Trust-Building Mechanism to Share an Action Agenda with Line Workers, Adolfo Lopez, Chile, Tomi Mandakovic, Florida International University

Workers seldom have the opportunity to share the meaning of terms with their superiors. The communication gap that develops over the years erodes the credibility of the higher ranks and undermines trust between ranks in general. The generation of a balanced action agenda that improves both working conditions and competitiveness of the business unit, need to be perceived as cost-effective by all involved. A semi-quantitative, participative means was designed and applied to elicit that perception across field workers of all ranks in a production facility. A preliminary version of a value logic elicitation procedure was used. The results of the process were later shared with a group consisting of many of the HR consultants of the company. The paper includes commented insights and hard data.

Improvement Teams as Support for the Quality System Implemented According to ISO 9000, Jose C. Prado-Prado, ETS Ingenieros Industriales Vigo, jcprado@uvigo.es, Arturo J. Fernandez-Gonzalez, ETS Ingenieros Industriales Vigo, ajfdez@uvigo.es

Many companies have difficulties keeping alive the quality management system after his implementation. This paper presents a methodology for the consolidation and improvement of the quality management system implemented according to ISO 9000 standards by means of Improvement Teams (a personnel participation structured system). The members of these Improvement Teams belong to different hierarchical levels and company departments. They face the challenge of keeping the system alive, by auditing, solving implementation problems and providing improvements to it. A case study of this methodology application is included within a leading Spanish company in the fashion-textile-clothing business. Rev 3-7-01

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The 5 Gaps in City Management,Felipe Graeml, felipe.graeml@per.com.br, Alexandre Graeml, Rolf Erdmann

This paper discusses the concept of product and production process, and the effect of their good understanding to the development actions toward a better quality of life for the population. The gaps between the population wishes and needs, and the products offered by local administration have many possible causes related to noise in the interfaces for 5 process steps. The understanding of these gaps can lead to better administration and sustainable political development.

SU-19-3 Session Title: Understanding Quality Implementation: Learning from Experience Session Chair: John R. Grout, Berry College, jgrout@campbell.berry.edu Session Time and Location: Sunday, April 1, 2001, 4:00-5:30, Toga

Kaizen Via the Ghost, Norman Faull, University of Cape Town, nfaull@gsb2.uct.ac.za, Peter Barry,University of Cape Town

The Japanese Hoshin approach infers a ghost or dual organization alongside the traditional line and staff organization. While the traditional structures manage the routine business operations, the ghost organization manages improvement project activities. South Africa has partnered with a Japanese organization for some five years to promote shop floor improvement processes. The paper reports on a follow-up study of twenty improvement managers in South Africa to assess the extent to which this ghost organization functions to drive the improvement processes. Other aspects of driving actual improvements in operations and overcoming implementation obstacles are discussed.

An Examination of Benchmarking in the Finance Function, Aby Ghobadian, Middlesex University Business School, A.Ghobadian@mdx.ac.uk, Hong Woo, Middlesex University Business School, H.Woo@mdx.ac.uk, David Gallear, Middlesex University Business School, d.gallear@mdx.ac.uk, Howard Viney, H.Viney@mdx.ac.uk, Middlesex University Business School, Johathan Liu, Middlesex University Business School, J.Liu@mdx.ac.uk

Benchmarking is an attempt to learn from the experiences of organizations with superior performance and initiate improvement activities. Today companies are becoming more aware of benchmarking and for many companies that is a key component of their total quality management (TQM) programs. Despite popularity in benchmarking and a simple logic, the concept is not well understood, and moreover, benchmarking is not simple to implement. Examination of the literature indicates a distinct paucity of empirical and multiple case studies in benchmarking research in general. Furthermore, benchmarking within the finance function has received scant attention. The end of the present research is to fill this important gap and provide a better understanding of the concept and how it can be usefully deployed in the finance function. This paper describes the multi-phase Rev 3-7-01

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empirical research approach adopted by the authors. Key findings related to the drivers for introduction benchmarking, criteria for selecting benchmarking projects and process, and benefits/pitfalls of benchmarking are presented.

Avoiding Mistake-Proofing Mistakes, John R. Grout, Campbell School of Business, Berry College, jgrout@campbell.berry.edu

While mistake-proofing (or poka-yoke) can be very effective in reducing human error in production processes, thoughtful and effective implementation will take certain caveats into account. This paper identifies findings from a variety of disciplines that will ensure thoughtful mistake-proofing devices result from the design process. These disciplines include engineering, statistics, psychology, traditional quality management, and prior research in mistake proofing. The nature of the improvement projects and the results achieved will be reported. If ignored, these caveats constitute limitations or liabilities of mistake-proofing methods that can lead to implementation mistakes.

Quality as the Main Requirement for the Competitive Survival of the Software Development Industries in the Future, Gabriela M. Cabel-Barbaran, University of Sao Paulo, gcabel@usp.br, Paulino G. Francischini, University of Sao Paulo

The understanding of the difficulties for producing software with quality has lead the software development Brazilian Industries to search for methods, techniques and tools to give support to software development and to guarantee its quality. However, researchers in this area have demonstrated that, in most cases the use of these new technologies does not guarantee a software product with quality, since technical and management aspects of a specific development process of an organization are not considered.

MO-19-1 Session Title: TQM Implementation: Models and Tools Session Chair: Dan Heiser, DePaul University, dheiser@wppost.deapaul.eduSession Time and Location: Monday, April 2, 2001, 10:00-11:30, Salon B

An Organizational Performance-Productivity Model: Going Beyond TQM and BPR, Rajan Selladurai, Indiana University Northwest, rsellad@iun.edu

This paper analyzes the merits and demerits of two popular widespread organizational development models, total quality management (TQM) and business process reengineering (BPR). It proposes and organizational performance-productivity model that integrates and enhances the two approaches with a synergistic perspective. Emphasis is placed on major elements such as customers, information technology, quality, business processes, leadership and people, etc. that organizations may use to improve performance and productivity.

Process Mapping with Excel, Dan Heiser, DePaul University, dheiser@wppost.deapaul.edu, Paul Schikora

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Process mapping has become a widely used analytic and communication tool to support process reengineering, ISO 9000 documentation, and multiple other process improvement and quality control initiatives. Unfortunately, current practice commonly utilizes specialized software applications to document the resulting process maps. As a consequence, users incur a monetary expense and are required to provide technical support for the specialized mapping software. This paper illustrates how both the additional out-of-the pocket and transaction costs of specialized software can be avoided by using the drawing functions of widely available spreadsheet application (Microsoft Excel) to prepare professional quality process maps.

Formulation of Strategies for Small and Medium Enterprises: A Case Study in the Restaurants Industry, Jose R. de Farias Filho, Fluminense University, Mara T. Salles, Fluminense University, mara@civil.uff.br, Leandro C. Amaro, Fluminense University, Renato G. de Medeiros, Fluminense University

This paper test the application of the strategy formulation methodology proposed by Hax and Majluf, 1996. Making use of field and bibliographical research, as well as the internet, we applied the methodology in a small company of the foodservice sector.

A New Look at TQM Implementation, Satish Mehra, The University of Memphis, smehra@memphis.edu, Surendra Agrawal, University of Memphis, sagrawal@memphis.edu

There are many writings about Total Quality Management (TQM)use and its implementation in today’s global business. Various authors have indicated what to do, while adopting TQM. This paper is a synthesis of various writings on TQM and what TQM is now, and what TQM of tomorrow should be. Furthermore, this paper develops a new approach, called the Quality Scorecard, while adopting TQM as a philosophy of managing business operations.

MO-19-2 Session Title: Quality-Continuous Improvement Salsa Session Chair: Brad Meyer, Drake University, Bradley.meyer@drake.eduSession Time and Location: Monday, April 2, 2001, 2:00-3:30, Salon B

A Comparative Analysis of Utility Rate Forecasting: The Cape Coral Experience, Terry Anderson, Donald A. Forrer, Troy State University, dforrer@peoplepc.com

This paper, co-authored by the city’s former Director of Business Management and Information, examines possible reasons for the errant forecast in a utility rate study conducted by a consulting organization for the City of Cape Coral, Florida. Four issues are hypothesized to led to the forecasting model producing inaccurate results.

Operations Entropy, Brad Meyer, Drake University, Bradley.meyer@drake.edu

There is a natural force at work in all operations tending to degrade productivity, where productivity is defined as the value of the output divided by the value of the inputs. This force, which operates at both the task level and the system level, is analogous to the concept of entropy in physics. This paper will define operations entropy, describe its

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operation and contributing factors and show its relation to continuous improvement techniques.

Process Improvement/Reengineering Integrated in Agile Organization’s Management Systems, Volker Looks, BMW Group, volker.looks@bmwgroup.com, Bin Wu, Cranfield University, B.Wu@cranfield.ac.uk

This paper summarizes the results of a research project that investigated the need for a process to design business processes as an integral part of an organization’s management system.

European Performance Satisfaction Index, Anders H. Westlund, Stockholm School of Economics, Sweden, anders.westlund@hhs.se

The EFQM (European Foundation for Quality Management) Business Excellence Model is widely used by the European business community for managing quality to achieve business excellence. The European Performance Satisfaction Index (EPSI) supports this model by providing reliable measurement on some key areas; customer satisfaction, people motivation, and society results (corporate citizenship). EPSI is developed by EFQM and IFCF (International Foundation for Customer Focus). The paper introduces the EPSI system and provides some empirical results from using it within a sample of industries (banking and telecom). The paper also gives some methodological comments.

Track: Service Operations Management Track

Track Chair: Arthur V. Hill, Curtis L. Carlson School of Management,University of Minnesota Operations & Management Science Department, 32119-th Avenue South -- Room 3-140, Minneapolis, Minnesota 55455-0413,ahill@csom.umn.edu.

SA-20-1 Session Title: Classification and design of servicesSession Chair: Scott E. Sampson, Brigham Young University,scott_sampson@byu.eduSession Time and Place: Saturday, March 31, 2001, 10:45-12:15, Sahara

The Unified Services Theory Approach to Service Operations Management,Scott E. Sampson, Department of Business Management, Marriott School ofManagement, Brigham YoungUniversity, Provo, UT 84602,scott_sampson@byu.edu

Over the years, various author have proposed frameworks forconceptualizing service operations management. One such framework is the"Unified Services Theory" (UST). While it is not the only framework, it isarguably the most useful. It unequivocally differentiates between serviceand manufacturing operations issues. It provides a perspective foranalyzing any service process. All other operations management issuesunique to service are derivatives of the UST. This presentation willdiscuss the various merits of the UST, implications of the UST for servicesmanagement research, and how the UST can be used as the basis for ServiceRev 3-7-01

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Operations Management curriculum.

A Comparative Study of Productivity Management in Different Services,Farhad Shafti, Robert Van der Meer, and Terry Williams, Department ofManagement Science, University of Strathclyde, Graham Hills Building, 40George Street, Glasgow G1 1QE, Scotland, farhad@mansci.strath.ac.uk

The paper is an effort to fill significant gaps in the service managementliterature, with emphasis on two particular issues: productivity and waysof classifying services. Twelve different services are studied empiricallyto investigate their differences and similarities regarding productivityissues. Based on this, relevant service dimensions are identified and anumber of classifications developed. This is the first study of its kind inwhich relevant service dimensions and classifications are derived fromempirical research into productivity issues. The work brings fresh andpractical insights into services operations that can help both academia andpractitioners in studying and managing services.

A Model of Service Classification Based on Consumer Needs, Susana C. FariasPereira and Orlando Jr. Cattini, Fundação Getúlio Vargas/EAESP, Departamento de Produção e Operações Industriais (POI), Av. 9 de Julho, 2029, 10o. andar, São Paulo-SP, CEP 01313-902, Brazil.

Most of the literature and research on services focus on thecharacteristics that distinguish products from service. One of the topicsto be improved is the service classification. Most service classificationsdo not consider the client needs as a crucial parameter either to thequality of the service or to the success of the strategy. This studypresents a service classification outline and proposes a framework thattakes the consumer needs into account. The dimensions considered in theclassification model were defined through the analysis of the managementliterature; and questionnaires answered by Brazilian marketing andoperations specialists.

New Service Development: A Framework for Future Research, Richard M. Franzaand Mark M. Davis, Bentley College, Department of Management, 175 ForestStreet (AAC 324), Waltham, MA 02452-4705, rfranza@bentley.edu.

While a significant amount of research has been conducted on new productdevelopment (NPD), the study of new service development (NSD) is relativelynew. Much of the NSD research has occurred in the last five years,culminating in the Fitzsimmons and Fitzsimmons (2000) book entitled "NewService Development." In this paper, we review the existing NSD literatureand compare and contrast the new product and new service developmentprocesses. In addition, we provide mini-case studies of the NSD process ata variety of firms. An analysis of the literature and case studies are usedto propose a research agenda in NSD.

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Beyond Blueprinting: A Socio-Technical Service Design Tool, Douglas M.Stewart, Department of Marketing and Supply Chain Management, The Eli BroadGraduate School of Business, Michigan State University, East Lansing, MI4882-1122, dmstew@bus.msu.edu.

This paper develops a service design tool based on Herbst's socio-technicalsystem design. There are six important ingredients in a service theprocess, actors (the customers and servers), information, knowledge,ingredients and the servicescape. And, all of these ingredients must besuccessfully coordinated in space and time to deliver a service asintended. This tool provides a means of capturing these relationships inmuch the same manner as a blueprint captures a subset of the importantingredients ? actors the process. The paper explores how this tool can beused to design quality into the service and prevent service failures.

SA-20-2 Session Title: Information technology and technology management for service operationsSession Chair: Craig M. Froehle, Kenan-Flagler Business School,FroehleC@bschool.unc.edu.Session Time and Place: Saturday, March 31, 2001, 2:00-3:30, Sahara

Designing Electronic Service Operations for Computer-Mediated CustomerContact, Craig M. Froehle and Aleda V. Roth, Kenan-Flagler Business School,CB#3490 McColl Building, University of North Carolina at Chapel Hill,Chapel Hill, NC 27599-3490, FroehleC@bschool.unc.edu.

Our study examines the role of technology in the design of online customerservice environments and customer care processes. By integrating Chase'sCustomer Contact Theory, the Theory of Reasoned Action, and the concept ofmedia richness, we develop a conceptual, structural equation model linkingseveral key technology attributes to customer beliefs, attitudes, andloyalty. We then develop new scales, apply them to a preliminary sample,and examine them for reliability and validity. Using an exploratorydataset, we then empirically test the model, draw conclusions, and offermanagerial implications.

Service Worker Empowerment Through Information Technology, Karen J.Napoleon, Terry College of Business, University of Georgia, Athens, GA30602, knapol@terry.uga.edu.

The empowerment approach to service delivery is cited as a means ofimproving customer service. Managers empower workers to "do whatever isnecessary" to satisfy the customer. Unfortunately, relinquishing thiscontrol to front-line employees has not always resulted in a benefit to thecompany. Research suggests that empowerment improves customer service onlywhen companies significantly change their policies, practices, andprocedures. Information technology is providing the knowledge and customerinformation necessary for making informed decisions. Additionally, buildingRev 3-7-01

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company information and procedures into the information system allows theorganization to maintain the necessary control, so that poor decisions arereduced.

Yield Management in the Service Industries, Annibal José Scavarda, RuaMarquês de Sao Vicente, Leonardo Junqueira Lustosa, and Luiz FelipeScavarda, Department of Industrial Engineering - Pontifícia,UniversidadeCatólica do Rio de Janeiro, Brazil, Rua Marquês de Sao Vicente,225, 950L, 22453-900, Gávea, Rio deJaneiro, RJ, Brazil,annibal@rdc.puc-rio.br.

Yield Management (YM) deals with an uncertain demand for a service whosecapacity is rather fixed and has a high fixed cost. YM is a method tomaximize the revenues of an industry with limited capacity that considersthe forecast of demand and that tries to spread the demand along the year.It can also maximize the revenue by segmenting the market in groups ofclients. The objective of this paper is to analyze the YM in the tourismindustry and its implications on the benefit of the whole tourism chaininvolved.

Document Automation In Service Operations: A Case Study, Jiaqin Yang andBrad Richcreek, Department of Management, Georgia College & StateUniversity, Milledgeville GA 31061, jyang@mail.gcsu.edu.

This paper presents a case study about a new trend in the printing industry- "document automation". The "document automation" can be viewed as anextended JIT (Just-In-Time) type production in printing operations - called"print-on-demand". With the aid of new communication technology, thisautomation process starts from the customer-side and completes with theservice delivery, including: project planning, cost estimation, jobcomposition, graphic design, digital file conversion, disk creation,engineering drawing, publishing, hardcopy printing, binding, andlamination. This case study demonstrates that such a "document automation"can improve printing service operations significantly and represents thefuture for the printing service industry.

SA-20-3 Session Title: Service qualitySession Chair: Joyce M. Hoffman, Stephen F. Austin State University,jhoffman@sfasu.eduSession Time and Place: Saturday, March 31, 2001, 4:00-5:30, Sahara

Quality of Work Is Not Quality of Service: Applied Quality Management forthe Small Field-Based Service Firm, Joyce M. Hoffman, Department ofManagement, Marketing, and International Business, Stephen F. Austin StateUniversity PO Box 9070 SFA Station, Nacogdoches, Texas 75962-9070.jhoffman@sfasu.edu

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Many small field-based service organizations are continuously challengedfor survival due to management's lack of understanding of customerexpectations, the sources of these expectations and the implementationnecessary to fulfill these expectations. This paper focuses on the gapbetween customer expectations and management's understanding and the gapbetween understanding and implementing activities for the service providedand the quality of the delivery. Using a case study methodology andinterviews with managers and customers based on SERVQUAL format and servicequality gap model of Zeithaml, et al. a framework is developed foridentifying discrepancies and a checklist/prescription for consistentlymanaging quality is presented.

How Will the Year 2000 Revisions of ISO 9000 Affect Service Organizations?,Forrest B. Green, Dept. of Mgt. and Mktg., Box 6954 Radford University,Radford, VA 24142, fgreen@radford.edu.

Over the past years, more and more service organizations have become ISO9000 certified. These include hospitals, schools, hotels, and otherorganizations for which manufacturing is not a direct application. Thestandard generally referred to is ISO 9004.2, which provides guidelines forany firm or business developing a quality management system (QMS). Yet someservice organizations have become registered to the same set of standardsas manufacturing. The new requirements of ISO 9000:2000 will have an impacton all registered firms since they must be re-audited under the revisedstandards in order to maintain their standing. In the future, all companieswill be certified to ISO 9001 (this will be the only standard) with apossible allowance for reduction of scope where a portion of the standarddoes not apply. This study examines the impact of these changes todetermine if the revisions of the year 2000 will be more or less favorableto service organizations.

Service Quality Control Based on the Data Envelopment Analysis, MichaelHoeck, hoeck@hermes2.econ.uni-hamburg.de, Institute of IndustrialManagement, University of Hamburg, Von-Melle-Park 5, 20251 Hamburg/Germany.

This paper deals with the economic worth of customer service and describesa Service Quality Control approach based on the Data Envelopment Analysis(DEA). Using sales related quality performance measures as outputs and costdata as inputs in a CCR-O-Model, this approach allows us to identifypotential cost reductions as well as sales opportunities. The qualitycontrol concept has been applied at the world leading retail company of thecatalog industry comparing the effectiveness of 24 customer contactcenters.

Using Failure Mode Effect Analyzes (FMEA) to Improve Service Quality,Roberto Gilioli Rotondaro, Escola Politecnica. University of São Paulo- Brazil, Av. Professor Almeida prado No. 128 Travessa 2. CEP : 05508-900,rotondar@cwaynet.com.br.Rev 3-7-01

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Service companies must be able to face the challenge to offer error freeservices to their customers. According to Service definition the customeris always present during the processes and delivery of the service. Thisarticle shows the use of FMEA as a prevention tool in the services offeredby a restaurant of a Medical Clinic. A group of employees were trained inprevention tools They designed the process map, found the critical pointsand applied the FMEA method in order to prevent any failure during servicesoperation. The first results indicated that all the actions implementedwere really effective in preventing errors.

Service Failures, Recovery Strategies, and Customer Retention in BrazilianRetail Operations, Rebecca Arkader, Kleber f. Figueiredo, and Giovana b.Ozório, The COPPEAD Graduate School of Business, Federal University of Riode Janeiro, Caixa Postal 68514, CEP 21949-900, Rio de Janeiro ? Brazil,rebecca@coppead.ufrj.br.

Difficulties in the prevention and recovery of failures in serviceoperations have been credited to poor knowledge on their nature. Based onresearch with customers of goods retail operations in Brazil, the paperidentifies perceived service failures, the recovery strategies employed byretailers to remedy them, and the impact of these strategies on resultingcustomer behavior. Using the critical incident technique, it was possibleto identify 13 categories of failures and 11 recovery strategies used byoperations. Results suggest that a good evaluation by customers of therecovery strategies adopted by retailers has a positive effect on customerretention.

SU-20-1 Session Title: Models for understanding service operationsSession Chair: John C. Goodale, Ball State University, jgoodale@gw.bsu.edu.Session Time and Place: Sunday, April 1, 2001, 10:00-11:30, Sahara

The Displayed-Inventory Newsvendor Problem, Tim Urban, OperationsManagement, The University of Tulsa, 600 South College Avenue, Tulsa,Oklahoma 74104, urbantl@utulsa.edu.

The effect of displayed inventory on retail sales is widely recognized andhas been empirically verified. However, neither the marketing literature(shelf-space allocation models) nor the operations management literature(inventory control models) has appropriately modeled the effect ofdisplayed inventory. We develop and analyze the displayed-inventorynewsvendor problem, utilizing a simple, deterministic model to illustratethe interdependencies between the inventory and space allocation decisions.The model is then extended to the multi-item case, which can beincorporated as part of a comprehensive shelf-management system.

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Mascio, School of Business, University of Western Sydney, PO Box 10,Kingswood NSW 2747, Australia, r.dimascio@uws.edu.au.

This paper frames a service process as a feedback control system, anddescribes the service equivalents of the following control elements:process, controller and measurement blocks; controlled, manipulated anddisturbance variables; and stability, performance and robustnessrequirements. As an example, a patient-treatment process in an emergencyward is recast as a feedback system and an off-line controller applied. Thebenefits of recasting services as feedback control systems flow in twoways: service design/operation will be improved by the application ofengineering principles; and process control literature will benefit fromtechniques specially developed to handle market fluctuations.

Empirical Distributions of Interarrival Times and Service Times in CallCenters, Don G. Wardell, John C. Goodale, and Jatinder N. D. Gupta,University of Utah, Dept of Management, 1645 E Campus Center Dr (106), SaltLake City, UT 84112-9304, mgtdgw@business.utah.edu.

A critical function for managers of call center operations is thescheduling of workers. Most scheduling software packages assume that theinterarrival and service times of calls are exponentially distributed.Although assumptions about these distributions have been studied inmanufacturing settings, to our knowledge they have not been empiricallytested in call center operations. In this paper we evaluate data fromseveral call center operations, and test the hypothesis that they areexponentially distributed. Results from the study should be useful forfurther studies on optimal scheduling policies for call center managers.

An LAV Methodology for Forecast Combination in Services Forecasting, J.Gaylord May and Joanne M. Sulek, Department of Mathematics and ComputerScience, Wake Forest University, Box 738 Reynolda Station, Winston-Salem,NC 27106, jgmay@mthcsc.wfu.edu.

A number of previous studies have shown that a combination of forecaststypically outperforms any component forecast. Service managers may wish touse forecast combination to improve forecast accuracy in predicting retailsales. In this study, revenue data from an actual service company is usedto generate and test a least absolute value (LAV) regression model forforecast combination. The LAV forecast is determined by minimizing weighteddeviations from the component forecasts. The accuracy of this approach iscompared to the accuracy of some traditional methods.

SU-20-2 Session Title: Managing service operations for customer satisfactionSession Chair: Larry Menor, University of Western Ontario,lmenor@ivey.uwo.ca.Session Time and Place: Sunday, April 1, 2001, 2:00-3:30, Sahara

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Debunking a Myth: An Empirical Investigation of Service Operations andCustomer Satisfaction, Larry J. Menor, Aleda V. Roth, Richard B. Chase, andChristopher A. Voss, Richard Ivey School of Business, University of WesternOntario, 1151 Richmond Street North, London, Ontario N6A 3K7, Canada,lmenor@ivey.uwo.ca.

A common myth surrounding the role of Operations Management is its soleinterests on productivity and day-to-day tasks. This research compares thepractices and outcomes for service firms experiencing increasing customersatisfaction with those experiencing decreasing or stagnant customersatisfaction. Our research finds practice drivers differences among thesegroups of firms. These drivers encompass an array of managerial dimensionsrelated to leadership, people, service processes and performancemeasurement. Performance outcome differences on multiple dimensions werealso identified. The empirical results reported provide compelling evidencefor the need to excel on multiple practice domains where customersatisfaction is of strategic importance.

Learning Administration as a Requirement to Brazilian State Public Sector,Áureo Dos Santos and Rolf Hermann Erdmann, Federal University of SantaCatarina, Socioeconomic Center - Management Science Department ? Caixa,Postal 476 - Campus Universitário - Trindade - 88.040-900 - Florianópolis ? SC, Brasil, aureosan@zaz.com.br.

This study presents a method called Learning Heterogeneous Circle (CHA),which aims to start a learning administration in Brazilian publicorganization. It is a strategic possibility to the organizationalimprovement and survival, through which it will be possible to face dailyproblems, which may come out from members' interaction. The requiredlearning administration searches for directing programs to their results,reducing bureaucratic intensity and intensifying human interaction based onfunctional and substantial reason. It requires a disciplinary and congruentdynamism to obtain organization with qualitative and quantitative income.

Why Some Call-Centre Operations are More Valued Than Others, Rita Di Mascio, School of Business, University of Western Sydney, PO Box 10, KingswoodNSW 2747, Australia, r.dimascio@uws.edu.au.

An exploratory qualitative study was conducted to find out what makes acall-centre a valued function within an organisation. Using a politicaleconomy framework and data generated by consultants, this paper describesthe characteristics of highly valued call-centres, and proposes how acall-centre can change in value over time by showing how the politicaleconomy containing the centre moves from one state to another; and how thecall-centre's founding process has long-lasting effects on its operation.The managers of highly valued call-centres are boundary-spanners - learningabout other departments, and teaching others about the centre - whichdrives the evolution.

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An Agenda for Service Case Management, Jake Simons and Greg Russell, Deptof Information Systems & Logistics, Georgia Southern University, P.O. Box8152, Statesboro, GA 30460-8152, jsimons@gasou.edu.

Many service industries employ a case management approach, in which onemanager works several customer cases, each of which involves several tasks.Case management involves a variety of operational problems, such asdetermining what tasks (and durations) are required, coordinating taskswhich need to be accomplished by someone else, dynamically prioritizingcases and tasks, incurring setups for switching between cases/tasks,deciding when to preempt tasks, deciding whether to batch tasks, trackingand reporting case status, and estimating case completion times. This paperprovides an overview of these operational problems, reviews relevantliterature, and suggests a long-term research agenda.

SU-20-3 Session Title: The impact of firm and national culture on service operations performanceSession Chair: Rohit Verma, DePaul University, rverma@condor.depaul.edu.Session Time and Place: Sunday, April 1, 2001, 4:00-5:30, Sahara

Exploring The Linkages Between Quality Culture and Performance Excellencein a Service Environment, Rohit Verma and Lori Cook, Department ofManagement, DePaul University, Chicago, IL 60604, rverma@condor.depaul.edu.

This study explores the linkages between employee service-quality cultureand performance excellence in the banking industry in Hong Kong. Properlyconducted quality culture and strategic consensus assessment has thepotential of informing a service organization of its current position andpotential areas for improvement. The opinions, values and practices ofemployees regarding quality are the fundamentals that define many serviceorganizations quality culture. Management must apply this knowledge to planfor the successful implementation of service-quality related activities.Results of the survey instrument, including a modified version of SERVQUAL,will be presented to explore the linkages in the banking industry.

Cultural Determinants of Service Customers' Costs of Quality: An EmpiricalInvestigation, William Youngdahl, Winter Nie, and Deborah Kellogg,Thunderbird, The American Graduate School of International Management,15249 N. 59th Avenue, Glendale, AZ 85306

The purpose of the research is to better understand the intricacies ofdesigning and delivering service to be delivered to customers fromdifferent cultures. Specifically, we revisit the conceptual underpinningsof customer participation before and during service encounters from amulticultural perspective. Does culture matter? Our approach is largelyexploratory. In order to investigate whether or not culture influencescustomers' participatory behaviors, broad sets of potential relationshipsbetween service customers' cultural orientations and service participationRev 3-7-01

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were investigated. Results will be presented, as will managerialprescriptions and possible future research directions.

Globalization of Services: Do Service Characteristics Impact theGlobalization Process, Ravi Kathuria and Maheshkumar P. Joshi, Departmentof Management, Haub School of Business, St. Joseph's University, 5600 CityAvenue, Philadelphia, PA 19131, kathuria@sju.edu.

The process of globalization is well researched in the Strategic Managementliterature but the focus has mainly been on the manufacturing sector.Services play a significant role in international trade, especially in thedeveloped economies. For example, service exports constituted about 30percent of the U.S. exports in 1990s and service imports were about 20percent of the U.S. imports (TERP, 1998). Given the importance of servicesin the global economy and the enormous employment potential in the servicesector, this study is aimed at analyzing the globalization process inservices. Specifically, we investigate the influence of uniquecharacteristics of services on the globalization process. The data has beencollected from the Banking industry and is being analyzed. The findingswill be shared at the conference.

A State of the Art Survey of Supply Chain Management Practices in Services,Joel D. Wisner and Keah-Choon Tan, wisner@ccmail.nevada.edu, University ofNevada, Las Vegas, College of Business, Dept. of Management, Las Vegas, NV89154-6009.

This research presents the findings of a comprehensive survey of industrypractitioners carried out to identify important supply chain managementstrategies in the U.S. and Europe. This study seeks to answer questionsregarding the impact of supply chain management on firm success, with thehope of stimulating further interest and research in this area. We surveyed5470 US and European members of NAPM and APICS during 1999 and received 527responses, including 147 service firm respondents. The data obtained fromthese service firms are analyzed and discussed in this paper.

Track: Technology and Information Management

Track Chair: Ronald Giachetti and Sushil GuptaRonald@eng.fiu.eduDepartment of Industrial & Systems EngineeringFlorida International University, Miami, FL.

SA-21-1 Session Title: Information Systems StrategySession Chair: Miriam E. NecesitoSession Time and Location: Saturday, March 31, 2001, 10:45-12:00, Kalahari

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An Interactive Decision Support System, Its Potential for Strategic, Tactical, and Operational Decisions in a Service Type of Organization, Miriam E. Necesito, Department of Industrial Engineering, Mapua Institute of Technology, Manila, Phillipines, Esmeria@TDK-PHIL.tdk-group.com

This paper presents a model of utilizing an interactive decision support system as a tool in all spectrum of operations management levels – strategic, tactical and operational decision making for a service type of organization – an academic institution. Various design mix of performance indicators will be presented as part of the decision support system. The primary benefit to be derived stem from the ability to use the model to conduct alternative scenarios reflecting a wide variety of different operational policies and assumptions. The framework presents the integration of three systems: the database management system (DBMS), the model base management system (MBMS) and knowledge base management system (KBMS). Validation test has been conducted to determine applicability and economic viability of the system.

Index Policies for Project Portfolio Management, Wallace J. Hopp and Souvik Banerjee, Northwestern University, hopp@northwestern.edu

We consider the problem of allocating a budgeted resource among competing projects to maximize the portfolio NPV. We assume task completion rates are monotonous nondecreasing functions of the resource allocated to the task. We show that under specified conditions a priority policy is optimal. However, the problem of selecting the best priority policy is still combinatorial in complexity. We then show that a simple index policy is optimal under some well defined cases. In other cases, we show that it is an effective heuristic by bounding maximum error and analyzing average error.

A Case Study Approach to Information Technology Return on Investment, Donald A. Forre, Troy State University, Cape Coral Florida 33914, dforrer@peoplepc.com and Terry A. Anderson

This research looks at Performance measurement and managerial skills at the City of Cape Coral Florida during the analysis, selection, implementation, and control stages of information technology changeover. The authors utilize the processes employed by City staff and officials to determine if managers’ design a system demonstrating the ability to recover the costs, but neglect to institute the processes necessary to ensure that ROI is accomplished. Additionally, the extent that environmental boundaries such as strategic constituencies and competing values are explored as possible obstacles to implementation of an effective ROI model.

This research examines the City's purchase of an IBM AS400 computer, H.T.E. software, and associated hardware to support a growing City. The case examines the selection process utilized, implementation issues, and control efforts to assure ROI as promised in the proposal. Additionally, the case analyzes processes to recover from early stage oversights

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The Main Management Processes in the Elaboration of E-business Strategies, Magnus L. Emmendoerfer, Universidade Federal de Santa Catarina Rua Jornalista Tito Carvalho, 66 – 101, 88040-480 Florianópolis - SC – BRASIL, magnus@fastlane.com.br

This article's main concern is to context the current market share scenery of the organizations in face of the information technology. It the author tries to demonstrate the main points that the organizations should consider in the elaboration of e-business strategies to minimize and to avoid possible problems in its implementation.

SA-21-2 Session Title: Design and Development of Information SystemsSession Chair: Kwoting Fang, fangkt@mis.yuntech.edu.tw, Deaprtment of Information Management, National Yunlin University of Science & Technology, Yunlin, Taiwan.Session Time and Location: Saturday, March 31, 2001, 2:00-3:30, Kalahari

An Integrated Model of Information Technology Adoption and Diffusion: Theories and Empirical Tests, Kwoting Fang, National Yunlin University of Science & Technology, 123 University Road, Section 3, Touliu, Yunlin 640, Taiwan, R.O.C., fangkt@mis.yuntech.edu.tw

Given the speed and functionality of information and networking technology to support innumerable opportunities in the business setting, it is imperative that managers must rethink the value of information technology (IT). Therefore, at an increase rate, the call for enterprises to innovate in making IT investment and utilizing IT to meet competitive environments becomes loud.

The purposes of this study were twofold. First, it pursued better measures and model, with Structural Equations Model, by integrating Technology Acceptance Model (TAM) and Information Technology Diffusion Model (ITDM). Second, it explored the relationship between this model and IT efficiency by the application of The Balanced Scorecard (TBS).

Comparative Evaluation of Traditional POM Model and of e-POM Model in a Systems Framework, S. Basheer Ahmed, PERI, Rockville, MD 20852, sbahmed@aol.com and Suryanarayana Addepalli

This paper outlines the structure and linkages in the traditional POM model. Recent entry of e-technology in different phases of production and operations management activity is examined. The paper discusses that product development is not confined to a local single company, but distributed throughout an elaborate chain of participating companies. It discusses how product data is transformed into a web site data store. The paper discusses the underlying concept of e-PDM model and the widely available web technologies in creating a light-footprint architecture that can be readily altered in response to continuously changing business demands. The paper proposes a systems framework for assessing the economic merits of e-POM model.

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An Investigation of Design Methodologies for Internet Business Application Development, Ronald E. Giachetti and Manelli Rodriguez-Medina, , Florida International University, Miami, Florida 33199, ronald@eng.fiu.edu

Internet related businesses have grown amazingly in the last few years. The success Internet applications is not determined by merely having a Website with different features, but rather having a product that provides performance and features demanded by the customer. The Internet application business is relatively new, and consequently lacks a formal development methodology. There are many design methodologies for software development and hypermedia development used in different industries that may be adapted to Internet businesses. However, these methodologies must be adapted to the unique needs of Internet applications. We review the existing methodologies of design and development for software projects. Approaches such as Joint Application Development (JAD), Participatory Design (PD), Rapid Application Development, System Development Life Cycle (SDLC) among others are studied and analyzed with the purpose of developing a new methodology adapted to the specific concerns of Internet application development projects.

Changing Business Models through Adoption of Entrepreneurisum: A Response to Internet Challenges and Opportunities by Existing Brick and Mortar Firms, Maheshkumar P. Joshi, Indian Institute of Technology, Hauzkhas, Delhi-110016 (India) and Ravi Kathuria

Given the importance attached to the critical information related to quality, partners, suppliers, customers, market conditions, supply conditions and so on, it is essential to have some tool which can put entire business information, with necessary classification, within easy accessibility of the top management. Not only the information, possible solutions to anticipated problems should be provided as well. That is information management system should analyze and synthesize the information to focus attention of top management on possible opportunities and troubling conditions. An attempt is made to propose a generalized model of such system that encompasses all functions of any type of business, including service sector. The novelty of the modeling technique is that the same technique can be used for both system analysis as well as business process analysis. The paper also discusses how this modeling technique can be used to analyze Apparel industry. Apparel manufacturing industry is unique in many aspects like fast fashion changes, possibility of variation in quality, large variety of outputs, large number of processes involved in converting fibers into garments, recycling of materials in back processes, variable process parameters and variable specifications of intermediate products.

SA-21-3 Session Title: Information Technology in ManufacturingSession Chair: M. GorgoglioneSession Time and Location: Saturday, March 31, 2001, 4:00-5:30, Kalahari

Visualization Techniques for Operations Managers M. Gorgoglione, A.C. Garavelli,Jay Marshal Teets, University of Florida, jayt@ufl.edu

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Visualization has been used extensively in the scientific community, and more recently to represent financial data. Applications in operations management have been scarce. This presentation reviews basic types of data visualization, and illustrates various methods for visualizing quality data for high volume manufacturing. The audience will be given the opportunity to assess their visual acuity and to detect quality problems using different visualization schemes.

A Framework for an Intelligent Information System Supporting Manufacturing Task Operation.Benny Tjahjono, Cranfield University, Cranfield Bedfordshire MK43 0AL, U.K, b.e.tjahjono.1998@cranfield.ac.uk The conventional task support system is found difficult to adapt to user’s needs and level of expertise, particularly when involving cognitive tasks, such as diagnostics. This paper discusses a research in formulating a framework of IMATS (Intelligent Manufacturing Task Support System). The main aim of the IMATS is to bridge the gap between the task and manufacturing process know-how, by providing active supports to the user. The proposed system incorporates various aspects of manufacturing organisation, such as human factors, information system, enabling technology and organisational issues. The paper first introduces a number of problems associated with current practice of manufacturing task support system followed by their conceptual solutions. Then the detail account about the framework of the system being developed is presented. The paper is summarised with the formulation of critical success factors underlying the research hypothesis.

The Structure and Application of Task-centered Multimedia Manufacturing Information System Bin Wu, Cranfield University, Cranfield, Bedford MK43 0AL, UK, B.Wu@cranfield.ac.uk

This paper discusses the structure of a task-centered, multi-media (TCMM) manufacturing information system which aims to provide a working environment to help the user collect, select and present manufacturing data according to the specific needs of managers/operators. With a task-centered user interface and an integrated computer-based training (CBT) module, such a system can be used at various levels within the organization both as a computer-aided training tool, and as an interactive system to help carry out on-line operations. A number of cases of industrial TCMM application are also presented.

MO-21-1 Session Title: Information Technology in Service IndustrySession Chair: Hideyasu KarasawaSession Time and Location: Monday, April 2, 2001, 10:00-11:30, Kalahari

Prospects of Media Serviceability Engineering Hideyasu Karasawa, Tokyo, Japan, h-kara@ra2.so-net.ne.jp

Companies today are putting an end to an era in which mass-production of the standardized product increased its value, and entering a new one in which customer-oriented services will form the core of its activities. Concurrently, with the evolution of

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the information communication technology, the media environment can now meet the requirements of the platform that support these services.

Traditionally, the technology to manage production and operations and the technology to meet consumer needs were developed independent of each other. But now, with the anticipation of a network-community age, the business process associated with the business management resources must develop and evolve through a system and methodology that maps reusable business elements and related processes.

In summary, companies today are in need of a management technology that integrates its service-realizing processes as well as the related elements-processing technology, quality management technology, production management technology and marketing technology. This paper discusses the concept of “media serviceability engineering,” which is defined as an engineering system that assesses and designs media-supported service processes and the resulting serviceability

Analysis of an Information Technology Help Desk, .Luz Minerva Gonzalez, Cesar Caldera, Ileana Gonzalez, and Ronald Giachetti, Florida International University, luzminerva30@hotmail.com

The help desk or Call Center provides a single point of contact for customers where its purpose is to help their customers to log all problem calls, resolve problems quickly or assign problems to appropriate support agent. This project consisted of an assessment of the IT call center at Royal Caribbean with the main objective of improving operational performance. The methodology employed to assess the current operations entailed a workflow analysis, identification of actual KPI’s (Key Performance Indicators), validity of service level agreements, and respective variance from set goals. Furthermore, a Simulation Model was developed to reflect the current operations with variables that could be altered to derive at alternative operational solutions. As part of the overall assessment, research was conducted on available commercial technological help desk solutions. Recommendations on alternative technological solutions based on Royal Caribbean’s needs were made.

Toward Business Process Innovation of Service Products, Kenji Muramatsu, Tokai University, 1117 Kitakaname, Hiratsuka, Kanagawa, 259-1292, Japan, kenji@keyaki.cc.u-tokai.ac.jp

This paper proposes several conditions on technology of Business Process Innovation for service products. These consist of comprehension of the whole business process, conquest of ideal system and optimality, taking advantage of information and communication technology, development of a methodology for obtaining the optimal solution, an approach to adapting itself to the change of the situation in a real context, and so on.

Self-service Systems: Adding Value to Organizations through Web-based Employee Self-service Systems, William R. Sherrad, San Diego State UniversitySan Diego, CA 92182-8234, sherrard@mail.sdsu.edu, Feraidoon Raafat, Stacey Rose, and Tracy Ward.Rev 3-7-01

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The focus of this paper is web-based employee self-service systems that add value to the organizations and improve employee satisfaction. New and emerging technologies continue to increase productivity and reduce costs in Human Resources management. Companies that are using web-based self-service software have found that these systems offer fewer errors, less time to accomplish work, decreased clerical and supervisory staffing requirements and improved employee satisfaction. The average cost to implement self-service ranges from $35 per employee in a large organization to $1,600 in a smaller one.

MO-21-3 Session Title: Information Technology Case Studies and ApplicationsSession Chair: Sanjeev DeshmukhSession Time and Location: Monday, April 2, 2001, 4:00-5:30, Togo

deshmukhsg@hotmail.comDepartment of Mechanical Engineering, Indian Institute of Technology, Delhi, India.

Effective Product Data Definition and Management: A Case Study Hooi-Leng Lee and D. Little, University of Huddersfield, Queensgate, Huddersfield HD1 3DH, UK, h.l.lee@hud.ac.uk

Product data is a one of the many critical resources to many enterprises. In order to retrieve or extract useful information and then making use of this information to aid decision making during the product development process, access to and sharing of accurate and up-to-date product data has become an urgent need. This paper presents the results from a case study with a local manufacturing firm in striving to introduce structured and effective product data definition and management within its organisation. The emphasis of this paper is on employee empowerment, better way of working within an organisation, and facilitating concurrent engineering through improved information flow. The paper also shows the importance of understanding the business needs prior to the introduction of any computerised solution in order to avoid technology pitfalls.

Integrated Information Management System for Apparel Industry, Sanjeev Deshmukh, Chandrashekhar Chiplunkar, and Ravishankar Chattopadyay, Indian Institute of Technology, Hauzkhas,Delhi-110016(India), deshmukhsg@hotmail.com

Given the importance attached to the critical information related to quality, partners, suppliers, customers, market conditions, supply conditions and so on, it is essential to have some tool which can put entire business information, with necessary classification, within easy accessibility of the top management. Not only the information, possible solutions to anticipated problems should be provided as well. That is information management system should analyze and synthesize the information to focus attention of top management on possible opportunities and troubling conditions. An attempt is made to propose a generalized model of such system that encompasses all functions of any type of business, including service sector. The novelty of the modeling technique is that the same technique can be used for both system analysis as well as business process analysis. The paper also discusses how this modeling technique can be used to analyze Apparel Rev 3-7-01

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industry. Apparel manufacturing industry is unique in many aspects like fast fashion changes, possibility of variation in quality, large variety of outputs, large number of processes involved in converting fibers into garments, recycling of materials in back processes, variable process parameters and variable specifications of intermediate products.

Aspects of the Structural Reforms of the United Nations Organization Operations and Management towards the Twenty-First Century, Shahidur Rahman, Nanyang Technological University, Singapore, 639798, asrahman@ntu.edu.sg

After the World War II, we have seen the changes in the United Nations Organization (UNO) leadership and its institutional matrix. Ever since the missions and activities of the UNO have been constantly growing in terms of size and significance. There have been a number of attempts by the UNO for the improvement of global peace, socio-economic developments, poverty elimination, pollution control, drugs, violence, and crime prevention. But the speed of the problem solving approaches and their achievements are not as much that can meet the Internet related new millennial growing needs. It seems a profound structural reform in the operations and management of UNO components is utmost necessary.

A Case Study on the Development Methodology of Factory Control System and Interface with Integration System on Shipbuilding Industry, Tae-Hyun Baek, Hyundai Industrial Research Institute, Hyundai Heavy Industries CO., LTD.,1, Cheonha-Dong, Dong-Ku, Ulsan, 682- 792, Korea, baekth@hanmail.net, Kuy-Hun Chung, and Ju-Chull Park.

As applications are increasing in size to the whole organization and distributed systems are being applied on a grand scale, we often face the unexpected problems, which are application control in distributed computing environment, security control, performance degradation, and interfaces with different types of DBMS(Data Base Management Systems). To solve these problems a 3-tier architecture is suggested. Even though 3-tier architecture requires more investment cost compared to 2-tier and is difficult to implement, it presents a smoother interface between DBMS, flexibility of selecting development software, extensibility, and system development by concurrent engineering. In this study, we present the 3-tier development methodology of factory control system by concurrent engineering and interface with upper integration system in shipbuilding industry.

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Track: Special Sessions

Track Chair: Lalit Johri, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand, lmjohri@ait.ac.th

Please note that this track will include additional presentations added after the final printing of the schedule. Details will be provided at the meeting.

MO-22-1 Session Title: Special Session 1Session Chair: Lalit Johri, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand, lmjohri@ait.ac.th Session Time and Location: Monday, April 2, 2001, 10:00-11:30, Executive Suite 2

Operations Strategy for Delivering Urban Environment Services in Asian Cities, Lalit Johri, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand, lmjohri@ait.ac.th

The urban environment services market in Asia is a multi trillion dollar opportunity and offers enormous growth opportunities to domestic and foreign companies. In most Asian countries the demand for water, sanitation and roads has been growing because of rapid urbanization. The estimates of investments required to provide water, sanitation and roads in urban cities in Asia range from 1.5 to 2 trillion dollars. In Asia, the urban services sectors have been neglected by governments and municipal bodies. The leaky infrastructure and poor service culture is reminiscent of the colonial model of the administration of urban services.

To exploit business opportunities in these sectors the investors and service providers have to cope with complex issues such as archaic public policies, erratic privatization strategies, lack of political will to price urban services, major technological gaps, diversity in culture, life styles and habits of the consumers. However, the opportunity seems to be too attractive to be ignored and many foreign companies are adapting their operations strategy to gain entry into Asian urban services markets. The objective of this study is to analyze the challenges faced by companies and map the evolution of their operations strategies.

The study concludes that successful companies take long-term view of the opportunity and invest not just to deliver the service and reap quick profits but also adopt intervention programs to positively change the operating environment. These companies participate in policy advocacy programs, invest in training and educating public policy makers, investors and users of services. They invest in "show case" projects to demonstrate the positive impact of their technologies, develop "local network of relationships" to nurture links with political representatives and bureaucrats. Rev 3-7-01

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