Enabling supply chain cooperation with information sharing

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2009.Cataloged from PDF version of thesis.Includes bibliographical references (p. 74-77).Virtual Business System (VBS) is a system with software and hardware components designed by Raytheon employees to improve operational performance by facilitating and reinforcing lean behavior. It has helped contribute to four years in a row of twenty-percent yearly reductions in costs by providing near real-time metrics information, visibility into the details underlying those metrics, and publishing results to provide accountability for continuous improvement efforts. Originally designed for use in a manufacturing cell, its use has since expanded to include project management, engineering, quality, and other functions. This thesis examines how VBS has contributed to internal alignment at Raytheon and explores whether it can fulfill Raytheon's external supply chain coordination needs as well. VBS was successfully upgraded to allow supplier access over Citrix; the next step is to conduct a pilot implementation to test the system in practice. As a "homegrown" system, VBS can be made to do nearly anything, and in time could fulfill Raytheon's supply chain integration needs. In the near term, additional work is likely to be necessary in the areas of data access control, user interface, and extension from stand-alone system to a peer-to-peer information sharing network. The VBS team will also need to continue gathering executive sponsorship and support in order to motivate the necessary change in business processes. A number of lessons applicable to supply chain integration systems in general can be learned from the success of VBS.(cont.) These include: the importance of ensuring client control and security of the data; the potential gains made possible by sharing functionality in addition to data; the need to include information about improvement processes when sharing information; and the critical need that the application remain flexible and responsive to change in user needs.by Akiva Holzer.S.M.M.B.A

Intermediador de serviços na Nuvem

Mestrado em Engenharia de Computadores e TelemáticaDe acordo com história dos sistemas informáticos, os engenheiros têm vindo a remodelar infraestruturas para melhorar a eficiência das organizações, visando o acesso partilhado a recursos computacionais. O advento da computação em núvem desencadeou um novo paradigma, proporcionando melhorias no alojamento e entrega de serviços através da Internet. Quando comparado com abordagens tradicionais, este apresenta vantajens por disponibilizar acesso ubíquo, escalável e sob demanda, a determinados conjuntos de recursos computacionais partilhados. Ao longo dos últimos anos, observou-se a entrada de novos operadores que providenciam serviços na núvem, a preços competitivos e diferentes acordos de nível de serviço (“Service Level Agreements”). Com a adoção crescente e sem precedentes da computação em núvem, os fornecedores da área estão se a focar na criação e na disponibilização de novos serviços, com valor acrescentado para os seus clientes. A competitividade do mercado e a existência de inúmeras opções de serviços e de modelos de negócio gerou entropia. Por terem sido criadas diferentes terminologias para conceitos com o mesmo significado e o facto de existir incompatibilidade de Interfaces de Programação Aplicacional (“Application Programming Interface”), deu-se uma restrição de fornecedores de serviços específicos na núvem a utilizadores. A fragmentação na faturação e na cobrança ocorreu quando os serviços na núvem passaram a ser contratualizados com diferentes fornecedores. Posto isto, seria uma mais valia existir uma entidade, que harmonizasse a relação entre os clientes e os múltiplos fornecedores de serviços na núvem, por meio de recomendação e auxílio na intermediação. Esta dissertação propõe e implementa um Intermediador de Serviços na Núvem focado no auxílio e motivação de programadores para recorrerem às suas aplicações na núvem. Descrevendo as aplicações de modo facilitado, um algoritmo inteligente recomendará várias ofertas de serviços na núvem cumprindo com os requisitos aplicacionais. Desta forma, é prestado aos utilizadores formas de submissão, gestão, monitorização e migração das suas aplicações numa núvem de núvens. A interação decorre a partir de uma única interface de programação que orquestrará todo um processo juntamente com outros gestores de serviços na núvem. Os utilizadores podem ainda interagir com o Intermediador de Serviços na Núvem a partir de um portal Web, uma interface de linha de comandos e bibliotecas cliente.Throughout the history of computer systems, experts have been reshaping IT infrastructure for improving the efficiency of organizations by enabling shared access to computational resources. The advent of cloud computing has sparked a new paradigm providing better hosting and service delivery over the Internet. It offers advantages over traditional solutions by providing ubiquitous, scalable and on-demand access to shared pools of computational resources. Over the course of these last years, we have seen new market players offering cloud services at competitive prices and different Service Level Agreements. With the unprecedented increasing adoption of cloud computing, cloud providers are on the look out for the creation and offering of new and valueadded services towards their customers. Market competitiveness, numerous service options and business models led to gradual entropy. Mismatching cloud terminology got introduced and incompatible APIs locked-in users to specific cloud service providers. Billing and charging become fragmented when consuming cloud services from multiple vendors. An entity recommending cloud providers and acting as an intermediary between the cloud consumer and providers would harmonize this interaction. This dissertation proposes and implements a Cloud Service Broker focusing on assisting and encouraging developers for running their applications on the cloud. Developers can easily describe their applications, where an intelligent algorithm will be able to recommend cloud offerings that better suit application requirements. In this way, users are aided in deploying, managing, monitoring and migrating their applications in a cloud of clouds. A single API is required for orchestrating the whole process in tandem with truly decoupled cloud managers. Users can also interact with the Cloud Service Broker through a Web portal, a command-line interface, and client libraries

The Managerial Impact on Small Business Global Supply Chain

In a global economy, companies that are able to engage in international trade may have a competitive advantage over others. Increased globalization is also increasing the demand for effective global supply management practices. Building on Lorenz\u27s chaos theory, this instrumental case study explored the strategies that 4 senior managers from small and medium-sized enterprises in Indianapolis, Indiana used to reduce disruptive vulnerabilities in the supply chain continuum. Review of company documents served as the second data collection method. Rowley\u27s 3-step analysis guided the coding process of the interview data, and the trustworthiness of interpretations was enhanced through methodological triangulation of company records. Findings revealed 3 strategies that these senior managers relied on for remaining strategically competitive in a global environment: understanding the communication challenges and addressing the issues, risk mitigation, and human capital management. Findings from this study may contribute to business practice and social change by providing business leaders with information about effective strategies to remain competitive or to explore international ventures while focusing on environmental causes. Sustainable practices lead to cost reduction for the organizations and a cleaner environment for the surrounding community

The Pudding of Trust

Trust - "reliance on the integrity, ability, or character of a person or thing" - is pervasive in social systems. We constantly apply it in interactions between people, organizations, animals, and even artifacts. We use it instinctively and implicitly in closed and static systems, or consciously and explicitly in open or dynamic systems. An epitome for the former case is a small village, where everybody knows everybody, and the villagers instinctively use their knowledge or stereotypes to trust or distrust their neighbors. A big city exemplifies the latter case, where people use explicit rules of behavior in diverse trust relationships. We already use trust in computing systems extensively, although usually subconsciously. The challenge for exploiting trust in computing lies in extending the use of trust-based solutions, first to artificial entities such as software agents or subsystems, then to human users' subconscious choices

Supply chain management tools and methods

In today's business environment, manufacturers need to manage their enterprises as an inseparable part of a supply chain. Key to achieving this is the creation of an extended and integrated information system. In an attempt to find out what needs to be done to improve current supply chain methods and tools, the current research project 1) reviewed the literature to establish current approaches to Supply Chain Management (SCM); 2) identified what tools and methods are available; 3) categorised the current approaches to supply chain management and established a current practice SCM model; 4) identified the requirements for improved SCM; 5) produced an outline requirements specification for improved SCM. The research has made a number of contributions to knowledge. A literature survey on the subject of what SCM involves and what a SCM system is was carried out and was followed by the conclusions that existing software systems have not been classified and tested against the criteria of a true SCM system. A survey of existing SCM software solutions provided data for an analysis of what typical SCM applications include and concluded that a comprehensive SCM solution currently does not exist. That conclusion was verified by a survey based on SCM expert interviews. Three case studies were carried out that looked into different parts of the supply chain and demonstrated the significance of advanced SCM functionality for each one of them. The case studies also involved the design and implementation of a supply chain mapping tool and a supplier relationship management tool. Finally, a conceptual specification of an improved SCM system was developed. The research will be of interest to practitioners in the area of SCM that are looking for ideas to improve SCM procedures and namely, are looking into implementing or developing an already existing software system for SCM. It also suggests ideas for further research, which may be of interest to research students who are interested in the area of SCM.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Automated Purchase Order - Experiments and Expectations in Mid-sized Manufacturing Companies

Operational processes were originally designed before of large-scale information technology revolution in industries. Based on this fact, it has been argued that by redesigning business processes with help of information technology, efficiencies in operational processes may be achieved. Process integration and automation should save valuable time and resources at the same time. However, in small and medium sized businesses limited resources reduce possibilities to implement both information technology and changes in business processes. The research in this area concentrates whether on large corporations (in depth or on large samples) or on small and medium sized companies based on statistical information. Longitudinal and deep analysis on business process change in small and medium sized companies is scarce. In depth analysis on small and medium sized companies in the area is scarce. This research investigates the savings in labour and capital that are achievable through automating and integrating routine purchase process within a supply chain. This study investigated the area of purchasing and especially routine purchasing of direct production materials. Through the use of action research, quantitative and qualitative analysis, a variety of methods are used in order to give a broader view to the data and results. From the practical point of view, the purchase process of production materials is often repetitive work based on information from diverse information systems and sources. This study investigated the possibility of increasing efficiency through automated routine processes. As an indicator of increased efficiency, change in inventory turns was chosen. Three research questions were set: will purchase order automation have an effect on inventory turns, what are the main contributors to any observed changes in inventory turns and are the observed changes relevant in a larger context of small and medium sized companies? For the two first questions action research methodology was used with participant observation. Two projects of purchase order automation were conducted and effects on inventory turns were measured. The automation projects were conducted in a medium sized electronics manufacturing company and with two of its suppliers. A controlling sample was collected from the company item transaction database. These results were analysed with quantitative analysis methods. Thedata includes three samples of data between years 2000 and 2004. Results showed that automation does not clearly improve inventory turns but the results are mixed. Observed changes result from improved parameter setting and change in business conditions. The third question was treated separately through semi-structured interviews within purchase professionals in medium sized manufacturing companies. Four interviews were conducted in 2014-2015 to verify results from purchase automation projects. The answers were analysed with qualitative methods. It was found that the process of automation and its results are relevant to medium sized manufacturing companies. Special care, however, should be taken while implementing the system and setting its basic parameters. From the theoretical perspective, the research emphasizes the assumption that the benefits of business process changes are not always clearly visible but some positive results may be achieved. In regard of human decision-making biases it is clear that they exist and the effects of these biases may be reduced through process automation. The use of several different methods in data collection and analysis opens a larger picture for a deep analysis of the processes and their results. Through action research insights to the actual phenomenon are gained and a longitudinal analysis gives more than a snapshot to it. From the managerial perspective, process automation is an option to consider but at the same time it should be part of a larger process change initiative to see that it does not result into sub optimisation of processes at the expense of general process optimisation of a company. It is crucial to understand the biases made by individual decision makers in business processes and see, how the negative effects of these biases may be avoided through careful consideration of process automation.Automatisoitu ostotilaus – kokeiluja ja odotuksia keskisuurissa valmistavissa yrityksissä Operatiiviset toimintatavat suunniteltiin ennen suurimittaista tietotekniikan vallankumousta eri teollisuuden aloilla. Onkin esitetty, että operatiivisten prosessien tehokkuutta voidaan kasvattaa uudistamalla liiketoimintaprosesseja ja käyttämällä niissä tietoteknisiä sovelluksia. Prosessien integroinnilla ja automatisoinnilla voidaan säästää arvokasta aikaa ja resursseja samanaikaisesti. Pienten ja keskisuurten yritysten kohdalla ongelmana ovat resurssien rajallisuus, mikä vaikeuttaa prosessien uudistamista ja tarvittavien tietoteknisten sovellusten käyttöönottoa. Tutkimus aiheesta rajoittuu joko suuryrityksiin (perusteellinen analyysi tai laajempaan otokseen perustuen) tai pieniin ja keskisuuriin yrityksiin tilastolliseen tietoon perustuen. Perusteellinen analyysi pienissä ja keskisuurissa yrityksissä on tällä alueella harvinaista. Tällä tutkimuksella selvitettiin, voidaanko rutiininomaisen ostotyön prosessin automatisoinnilla ja integroinnilla toimittajien kanssa saavuttaa säästöjä toimitusketjun työ- ja pääomakustannuksissa. Tutkimus tehtiin siis ostotyön ja erityisesti suorien tuotannollisten materiaaliostojen alueella. Käyttämällä toimintatutkimusmenetelmää, sekä kvantitatiivisia että laadullisia analyysitapoja, saadaan laajempi näkökulma käsiteltyyn tietoon ja tuloksiin. Käytännöllisestä lähtökohdasta katsoen on tuotannollisten materiaalien ostotoiminta usein toistuvaa, rutiininomaista työtä, joka perustuu tietoon eri järjestelmistä ja lähteistä. Tuottavuuden nostamiseksi oli kiinnostava tutkia saadaanko rutiinityön automatisoinnilla tehostettua kyseistä prosessia. Varaston kierron muutos valittiin tehokkuuden nousun mittariksi. Tutkimuksessa haettiin vastausta kolmeen kysymykseen: onko ostotilauksen automatisoinnilla vaikutusta varaston kiertonopeuteen, mitkä tekijät vaikuttavat havaittuihin muutoksiin varaston kiertonopeudessa ja ovatko tässä tutkimuksessa saadut havainnot merkittäviä suuremmassa joukossa pieniä ja keskisuuria yrityksiä? Kahden ensimmäisen kysymyksen kohdalla käytettiin toimintatutkimusta ja tutkijan osallistumista toimintaan tutkittavassa kohteessa. Kaksi ostotilauksen automatisointiprojektia toteutettiin ja niiden yhteydessä mitattiin varaston kiertonopeuden muutoksia. Automatisointiprojektit toteutettiin keskisuuressa yrityksessä kahden yrityksen tavarantoimittajan kanssa. Vertaileva otos kerättiin yrityksen nimiketapahtumien tietokannasta. Nämä tulokset analysoitiin kvalitatiivisin menetelmin. Materiaali sisältää kolme otosta vuosien 2000 ja 2004 väliseltä ajalta. Tutkimuksessa todettiin, että automatisointi ei selkeästi parantanut varastojen kiertonopeutta vaan tulokset ovat ristiriitaisia. Havaitut muutokset johtuvat pääsääntöisesti parannetusta järjestelmän parametrien asetuksista sekä muista liiketoimintaympäristön muutoksista. Kolmas tutkimuskysymys käsiteltiin erikseen käyttäen puolistrukturoitua haastattelurunkoa, jonka avulla haastateltiin ostotoiminnan ammattilaisia keskisuurissa valmistavissa yrityksissä. Vuosina 2014-2015 toteutettiin neljä haastattelua, jotta voitaisiin tarkistaa automatisointiprojektien tuottamat tulokset. Haastattelujen vastaukset analysoitiin laadullisin menetelmin. Tuloksena havaittiin, että automatisointiprosessi ja sen tulokset ovat merkityksellisiä keskisuurissa valmistavissa yrityksissä. Erityinen huomio tulee kuitenkin kiinnittää käyttöönottoprojektiin ja järjestelmän perustietojen määritykseen. Teoreettisesta näkökulmasta tutkimus vahvistaa näkemystä siitä, että liiketoimintaprosessien muutoksella saadut hyödyt eivät ole aina selvästi näkyvissä, vaikka joitain positiivisia vaikutuksia voidaan havaita. Inhimillisten päätöksentekoprosessien alttius poikkeamille normaalista vaikuttaa myös ostoprosessiin, ja automatisoimalla ostoprosessia sen negatiivisia vaikutuksia varaston kiertonopeuteen voidaan vähentää. Eri menetelmien käyttö tiedon keräämisessä ja tiedon analysoinnissa antaa laajemman kuvan toimintatapoihin ja niiden tuloksiin. Toimintatutkimuksen avulla voidaan päästä lähemmäs asioiden todellisia syitä ja pitkällä tutkimusjänteellä saadaan enemmän kuin yksittäisiä kuvia tilanteesta. Yrityksen johdon näkökulmasta toimintaprosessien automatisointi on yksi mahdollisuus, mutta sen tulisi aina olla seurausta laajemmasta toiminnan arvioinnista jotta vältytään yksittäisten prosessien optimoinnilta koko yrityksen liiketoimintaprosessin optimoinnin kustannuksella. On myös erittäin tärkeää ymmärtää yksittäisen päätöksentekijän aiheuttamat poikkeamat prosessiin, ja se miten nämä poikkeamat voidaan välttää huolellisella valinnalla siitä, mitä prosesseja automatisoidaan.Siirretty Doriast

The impact of IT–business strategic alignment on firm performance: The evolving role of IT in industries

This study proposes and validates a new industry taxonomy to understand the use of IT that generates superior economic returns based on the specific economic and competitive characteristics of four different industry types and the strategic role of IT in each of these industry environments. Our findings extend the well-established industry taxonomy on the strategic role of IT (Automate, Informate, Transform) by considering how IT is changing the nature of the product/service in industries where transformational logics prevail. We found that in industries where the product/service is digital in nature, the firms that achieve higher economic returns are those where IT is used to support dual strategies based on the integration of cost leadership and differentiation. Conversely, in other industries - with the exception of those producing commodities - the firms that achieve superior returns are those that use IT to support differentiation. The results of this study can help managers make intelligent decisions about competitive strategies and IT investments, depending on the business environment of the sector in which the firm operates and the generative potential of emerging technologies to do new things

Determinants of electronic data interchange adoption in international buyer -supplier communications

In spite of the increased interest in supply chain management in recent years, few studies have examined the adoption of the technologies that facilitate information flows along the supply chain. Information flows have been shown to have a positive effect on economic efficiency and supply chain partner satisfaction. The adoption and use of information technologies to communicate with suppliers can also stimulate small business growth and foster regional economic development. This dissertation develops and empirically tests a model of the determinants of the adoption of interorganizational information systems, specifically electronic data interchange (EDI), between buyers and suppliers in international supply chains. Plant level data from the Mexican maquiladora industry allows focusing specifically on international supply chains. EDI use is measured both as a binary variable, and as a set of metric dimensions. As the main determinants of EDI adoption, this study compares economic efficiency, operationalized as the perceived benefits of EDI use, and institutional factors, operationalized as external pressure to adopt EDI. In addition, hypotheses are tested on the impact of plant size, industry, and type of purchase, on EDI adoption. Multivariate statistical analysis is used to test the hypothesized relationships, and logit and tobit models are also used to assess the impact of variables on dichotomous and metric EDI use variables respectively. This study provides valuable insight into the process of technology adoption in multinational corporations and new information on the use of information technology in the maquiladora industry. The conclusions drawn from this study are useful for economic development and planning, supplier development, and the management of multinational firms and supply chains

An Investigation of Supply Chain Management.

Supply chain exists in any business. An efficient supply chain management can help the organisation to gain a competitive advantage by improving efficiency, reducing cost, minimising risk and maximising customer's satisfactory. Supplier base is vital to an overseas studying consultant industry, only when it owns aboundant provider resources and stay in a healthy relationship in the market. It can provide more options as it can to its customers and gain the competitive advantage in the market. This report reviewed relevant theory on supply chain and supply chain management, focusing on supplier selection, supplier relationshiop managment, and supplier evaluation. It emphasizes on vendor selection criteria, contracting strategy and supplier relationship managment. upplier evaluation is also taken into consideration on the importance and the metrics of performance measurement. A case study was conducted to investigate and analysis the supply chain managment in an overseas studying consultancy. AL Consultant Ltd. The research was completed using primary and secondary methods of information collection of AL's background and supply chain management, as well as the relevant theory in this area. With the data and analysis gathered, several recommendations are given to enhance the supply chain managementin AL Consultant Ltd