Teaching operations management using a 'pseudo'-scientific approach

The purpose of this paper is to explore a theory led approach to teaching operations and supply chain management that has emerged from the analysis of seminal operations management developments and case research. This research identified common operations construct relationships encompassing variation, uncertainty, buffering mechanisms and trade-offs which are used to provide a common basis for explaining these developments, linking established theory with current professional practice. The construct relationships are further shown to comprise three distinct but coordinated strategies that provide a useful framework for case evaluatio

Towards a lean model for production management of refurbishment projects, VTT Technology: 94

This is the Stage 3 Report for the ApRemodel project, which aims at improving processes for multi-occupancy retrofit by generating a lean model for project delivery. In this respect, a process-driven approach has been adopted to investigate what can be done to improve the way that retrofits projects are delivered. An initial literature review, focused on the management of refurbishment works, revealed that the research on this matter is scarce. There are plenty of studies related to the broad refurbishment area, however only a small number refer to the way that those construction projects are delivered. According to the literature, construction organisations have predominantly used traditional methods for managing the production of refurbishment projects. The problem is that those tools and techniques are not often appropriate to cope with the complex characteristics inherent to construction projects, especially in the case of refurbishments. Moreover, they have often not been based on a clear theoretical foundation. As a result, numerous types of waste have been identified in refurbishment projects such as waiting time, disruptions in performing tasks on site, rework, among others. This has led to unsatisfactory project performance in terms of low productivity, project delays, and cost overrun. The first step towards better production management in refurbishment projects is recognising the complexity of the sector in order to adopt the correct approach to cope with this specific scenario. In this respect, lean construction is identified as an appropriate way to deal with the complexity and uncertainty inherent in refurbishment projects, given that this management philosophy fully integrates the conversion, flow, and value views. This document builds on the findings from the literature review as well as evidence from case studies. Managerial practices based on lean construction principles have presented successful results in the management of complex projects. Case studies available in the literature report the feasibility and usefulness of this theoretical foundation. Moreover, the evidence from these studies show considerable potential for improving the management of refurbishment works. A list of methods, tools, and techniques are identified. This report may be used by construction refurbishment organisations and housing associations as a starting point for improving the efficiency in managing production of refurbishment projects. To this end, partnerships between industry and academia are strongly recommended. 4 Although the usefulness of lean principles in complex projects is already proved, further work is needed to check what practices are best for the respective refurbishment context, as well as identifying enablers and barriers for practical adoption. Furthermore, additional studies would be also necessary to better understand the extent to which the implementation of lean philosophy might influence performance of refurbishment projects. This report should be seen as work in progress with much more to learn, as detailed research work around the sustainable retrofit process in a lean way is further developed

An integrated shipment planning and storage capacity decision under uncertainty: a simulation study

Purpose – In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors take into account uncertainty of the demand rate and shipment lead time. While shipment planning is tactical or operational in nature, increasing storage capacity often requires top management’s authority. The purpose of this paper is to present a new method to integrate both operational and strategic decision parameters, namely shipment planning and storage capacity decision under uncertainty. The ultimate goal is to provide a near optimal solution that leads to a striking balance between the total logistics costs and product availability, critical in maritime logistics of bulk shipment of commodity items. Design/methodology/approach – The authors use simulation as research method. The authors develop a simulation model to investigate the effects of various factors on costs and service levels of a distribution system. The model mimics the transportation and distribution problems of bulk cement in a major cement company in Indonesia consisting of a silo at the port of origin, two silos at two ports of destination, and a number of ships that transport the bulk cement. The authors develop a number of “what-if” scenarios by varying the storage capacity at the port of origin as well as at the ports of destinations, number of ships operated, operating hours of ports, and dispatching rules for the ships. Each scenario is evaluated in terms of costs and service level. A full factorial experiment has been conducted and analysis of variance has been used to analyze the results. Findings – The results suggest that the number of ships deployed, silo capacity, working hours of ports, and the dispatching rules of ships significantly affect both total costs and service level. Interestingly, operating fewer ships enables the company to achieve almost the same service level and gaining substantial cost savings if constraints in other part of the system are alleviated, i.e., storage capacities and working hours of ports are extended. Practical implications – Cost is a competitive factor for bulk items like cement, and thus the proposed scenarios could be implemented by the company to substantially reduce the transportation and distribution costs. Alleviating storage capacity constraint is obviously an idea that needs to be considered when optimizing shipment planning alone could not give significant improvements. Originality/value – Existing research has so far focussed on the optimization of shipment planning/scheduling, and considers shipment planning/scheduling as the objective function while treating the storage capacity as constraints. The simulation model enables “what-if” analyses to be performed and has overcome the difficulties and impracticalities of analytical methods especially when the system incorporates stochastic variables exhibited in the case example. The use of efficient frontier analysis for analyzing the simulation results is a novel idea which has been proven to be effective in screening non-dominated solutions. This has provided the authors with near optimal solutions to trade-off logistics costs and service levels (availability), with minimal experimentation times

The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems

Recent years have witnessed companies abandon traditional open-loop supply chain structures in favour of closed-loop variants, in a bid to mitigate environmental impacts and exploit economic opportunities. Central to the closed-loop paradigm is remanufacturing: the restoration of used products to useful life. While this operational model has huge potential to extend product life-cycles, the collection and recovery processes diminish the effectiveness of existing control mechanisms for open-loop systems. We systematically review the literature in the field of closed-loop supply chain dynamics, which explores the time-varying interactions of material and information flows in the different elements of remanufacturing supply chains. We supplement this with further reviews of what we call the three ‘pillars’ of such systems, i.e. forecasting, collection, and inventory and production control. This provides us with an interdisciplinary lens to investigate how a ‘boomerang’ effect (i.e. sale, consumption, and return processes) impacts on the behaviour of the closed-loop system and to understand how it can be controlled. To facilitate this, we contrast closed-loop supply chain dynamics research to the well-developed research in each pillar; explore how different disciplines have accommodated the supply, process, demand, and control uncertainties; and provide insights for future research on the dynamics of remanufacturing systems

Tourism supply chain & strategic partnerships for managing the complexity in tourism industry

The paper aims to investigate the possible relationship between Tourism Supply Chain and Strategic Partnership, read as a way to reduce and better manage the complexity in Tourism Industry. This last has been analysed under multi-disciplinary approaches (economic, sociological, psychological, anthropological and geographic) to better understand its main components. A synthesis of origin of Tourism Supply Chain term was provided. VRIO framework and PEST analysis was used with the aim to better understand the strategic decision of integration the chain with a single or multiple rings. Starting from this, a theoretical framework from a holistic analysis is provided

Functional foods : a conceptual model for assessing their safety and effectiveness

This report shows that the product-diet dilemma can be solved by developing a predictive model. The model integrates food intake data, dynamic consumption patterns and the production chain model and combines them with a risk-benefit approach

Visual analytics for supply network management: system design and evaluation

We propose a visual analytic system to augment and enhance decision-making processes of supply chain managers. Several design requirements drive the development of our integrated architecture and lead to three primary capabilities of our system prototype. First, a visual analytic system must integrate various relevant views and perspectives that highlight different structural aspects of a supply network. Second, the system must deliver required information on-demand and update the visual representation via user-initiated interactions. Third, the system must provide both descriptive and predictive analytic functions for managers to gain contingency intelligence. Based on these capabilities we implement an interactive web-based visual analytic system. Our system enables managers to interactively apply visual encodings based on different node and edge attributes to facilitate mental map matching between abstract attributes and visual elements. Grounded in cognitive fit theory, we demonstrate that an interactive visual system that dynamically adjusts visual representations to the decision environment can significantly enhance decision-making processes in a supply network setting. We conduct multi-stage evaluation sessions with prototypical users that collectively confirm the value of our system. Our results indicate a positive reaction to our system. We conclude with implications and future research opportunities.The authors would like to thank the participants of the 2015 Businessvis Workshop at IEEE VIS, Prof. Benoit Montreuil, and Dr. Driss Hakimi for their valuable feedback on an earlier version of the software; Prof. Manpreet Hora for assisting with and Georgia Tech graduate students for participating in the evaluation sessions; and the two anonymous reviewers for their detailed comments and suggestions. The study was in part supported by the Tennenbaum Institute at Georgia Tech Award # K9305. (K9305 - Tennenbaum Institute at Georgia Tech Award)Accepted manuscrip

Exploring pathways for sustainable water management in river deltas in a changing environment

Exploring adaptation pathways into an uncertain future can support decisionmaking in achieving sustainable water management in a changing environment. Our objective is to develop and test a method to identify such pathways by including dynamics from natural variability and the interaction between the water system and society. Present planning studies on long-term water management often use a few plausible futures for one or two projection years, ignoring the dynamic aspect of adaptation through the interaction between the water system and society. Our approach is to explore pathways using multiple realisations of transient scenarios with an Integrated Assessment Meta Model (IAMM). This paper presents the first application of the method using a hypothetical case study. The case study shows how to explore and evaluate adaptation pathways. With the pathways it is possible to identify opportunities, threats, timing and sequence of policy options, which can be used by policymakers to develop water management roadmaps into the future. By including the dynamics between the water system and society, the influence of uncertainties in both systems becomes clearer. The results show, among others, that climate variability rather than climate change appears to be important for taking decisions in water management

Eco Global Evaluation: Cross Benefits of Economic and Ecological Evaluation

This paper highlights the complementarities of cost and environmental evaluation in a sustainable approach. Starting with the needs and limits for whole product lifecycle evaluation, this paper begins with the modeling, data capture and performance indicator aspects. In a second step, the information issue, regarding the whole lifecycle of the product is addressed. In order to go further than the economical evaluations/assessment, the value concept (for a product or a service) is discussed. Value could combine functional requirements, cost objectives and environmental impact. Finally, knowledge issues which address the complexity of integrating multi-disciplinary expertise to the whole lifecycle of a product are discussing.EcoSD NetworkEcoSD networ

Inventory drivers in a pharmaceutical supply chain

In recent years, inventory reduction has been a key objective of pharmaceutical companies, especially within cost optimization initiatives. Pharmaceutical supply chains are characterized by volatile and unpredictable demands –especially in emergent markets-, high service levels, and complex, perishable finished-good portfolios, which makes keeping reasonable amounts of stock a true challenge. However, a one-way strategy towards zero-inventory is in reality inapplicable, due to the strategic nature and importance of the products being commercialised. Therefore, pharmaceutical supply chains are in need of new inventory strategies in order to remain competitive. Finished-goods inventory management in the pharmaceutical industry is closely related to the manufacturing systems and supply chain configurations that companies adopt. The factors considered in inventory management policies, however, do not always cover the full supply chain spectrum in which companies operate. This paper works under the pre-assumption that, in fact, there is a complex relationship between the inventory configurations that companies adopt and the factors behind them. The intention of this paper is to understand the factors driving high finished-goods inventory levels in pharmaceutical supply chains and assist supply chain managers in determining which of them can be influenced in order to reduce inventories to an optimal degree. Reasons for reducing inventory levels are found in high inventory holding and scrap related costs; in addition to lost sales for not being able to serve the customers with the adequate shelf life requirements. The thesis conducts a single case study research in a multi-national pharmaceutical company, which is used to examine typical inventory configurations and the factors affecting these configurations. This paper presents a framework that can assist supply chain managers in determining the most important inventory drivers in pharmaceutical supply chains. The findings in this study suggest that while external and downstream supply chain factors are recognized as being critical to pursue inventory optimization initiatives, pharmaceutical companies are oriented towards optimizing production processes and meeting regulatory requirements while still complying with high service levels, being internal factors the ones prevailing when making inventory management decisions. Furthermore, this paper investigates, through predictive modelling techniques, how various intrinsic and extrinsic factors influence the inventory configurations of the case study company. The study shows that inventory configurations are relatively unstable over time, especially in configurations that present high safety stock levels; and that production features and product characteristics are important explanatory factors behind high inventory levels. Regulatory requirements also play an important role in explaining the high strategic inventory levels that pharmaceutical companies hold