A simulation based supply partner selection decision support tool for service provision in Dell.

Partner selection is an important aspect of all outsourcing processes. Traditional partner selection, typically involves steps to determine the criteria for outsourcing, followed by a qualification of potential suppliers and concluding with a final selection of partner(s). Reverse auctions (RAs) have widely been used for partner selection in recent times. However, RAs, although proven successful in initial price reduction strategies for product and service provision, can suffer from reduced effectiveness as the number of executions increases. This paper illustrates Dell’s experience of such diminishing returns for its outsourced after sales product repair service and presents the development, of a new partner selection methodology which incorporates a new process improvement stage to be executed in combination with the final selection phase. This new methodology is underpinned by the development of a computer based simulation supply partner selection decision support tool for service provision. The paper highlights the significant additional cost saving benefits achievable and improvement in service through the use of advanced simulation based decision supports

Entry mode selection for internationalization of giant Chinese state owned companies: The case of entrance in Africa of China communications construction company

Enterprise internationalization is an inevitable choice as open economies develop to a certain level. According to the direct investment development path theory of John Dunning, when the GNP Per Capita exceeds $3000, the net foreign investment will be positive. With rapid development over the past three decades, China’s international economic position and influence have significantly improved and its GNP Per Capita has surpassed$ 4000, it has entered the rapid growth stage for investment development as described in Dunning’s theory. At this stage, the market entry mode selection is the first issue to tackle for enterprise internationalization. This thesis takes China’s giant state owned construction companies as research object and the author analyzes the internal and external environments and the strategic selection for internationalization operation, and describes the conceptions, categories, internal attributes and factors of market entry mode selection for internationalization of construction companies. This thesis focuses on China Communications Construction Company Ltd (hereinafter referred to as CCCC), representative of giant Chinese state owned construction companies, sets up the SWOT analysis and weight system and conducts strategic positioning. Based on the above strategic positioning, the author takes into consideration the national background of these companies and puts forward three assumptions and their theoretical framework. The thesis takes CCCC’s entry into the market of Kenya and Angola as an example, verifies the effectiveness and application of the theoretical framework, and makes up the deficiency of the theory on market entry mode selection for enterprise internationalization, providing reference for enterprises’ market entry practice.Quando as economias abertas atingem um determinado nível de desenvolvimento a internacionalização das empresas torna-se uma escolha inevitável. De acordo com a teoria de investiemnto directo de John Dunning, quando o rendimento per capita excede $3000, o investimento estrangeiro liquido será positivo. Com um crescimento económico rápido nas últimas três décadas, a posição económica internacional da China e influência melhoraram significativamente e o seu rendimento per capita ultrapassou os$4000. Atingiu, deste modo, o estágio defendido por Dunning. Esta tese tem como objecto de pesquisa as empresas “gigantes” estatais Chinesas do ramo das obras públicas e o autor analisa a envolvente interna e externa e a escolha estratégica dos modos de internacionalização das mesmas. Esta tese foca-se na empresa chinesa – China Communications Construction Company Ltd (CCCC), representante das empresas gigantes estatais chinesas de obras públicas, descrevendo o processo de realização da análise SWOT. Tendo por base o posicionamento estratégico da empresa, o autor analisa o contexto em que esta empresa se desenvolveu e avança com três pressupostos no que concerne à sua internacionalização. A tese compara também os processos de entrada da CCCC em Angola e no Quénia

Naïve Bayesian Classifier for Selecting Good/Bad Projects during the Early Stage of International Construction Bidding Decisions

Since the 1970s, revenues generated by Korean contractors in international construction have increased rapidly, exceeding USD 70 billion per year in recent years. However, Korean contractors face significant risks from market uncertainty and sensitivity to economic volatility and technical difficulties. As the volatility of these risks threatens project profitability, approximately 15% of bad projects were found to account for 74% of losses from the same international construction sector. Anticipating bad projects via preemptive risk management can better prevent losses so that contractors can enhance the efficiency of bidding decisions during the early stages of a project cycle. In line with these objectives, this paper examines the effect of such factors on the degree of project profitability. The Naïve Bayesian classifier is applied to identify a good project screening tool, which increases practical applicability using binomial variables with limited information that is obtainable in the early stages. The proposed model produced superior classification results that adequately reflect contractor views of risk. It is anticipated that when users apply the proposed model based on their own knowledge and expertise, overall firm profit rates will increase as a result of early abandonment of bad projects as well as the prioritization of good projects before final bidding decisions are made

The "water-specific PPP risk model"

Risk assessment is one of the key success factors of public-private partnerships (PPP) water projects. Factors such as utility condition problems, unsustainable increase in water supply requirements, socio-technical issues and changes in government policies can cause such capital-intensive projects to overrun planned budget and schedule allocations. Where the project is a commercial asset, delayed completion time and cost overruns usually have significant impact on the profitability of the project as well as the estimated returns on investment over the operational phase of the project. Understanding the specific risks involved in PPP water projects can be very crucial in designing containment measures to deal with their likely impact on the projects. Through the combination of review of literature and questionnaires, different risk elements in PPP water projects were first identified. The identified elements were then rated and prioritized using the Analytical Network Process (ANP) to demonstrate the complex interactions among those risks and to establish the most salient Value-for-Money (VFM) variables on PPP water projects. The outcome of this research is an innovative ANP-based model known as the “Water-Specific PPP Risk Model” that offers a platform to incorporate tangible and intangible risk variables into a risk assessment process in water infrastructure projects

The "water-specific PPP risk model"

Risk assessment is one of the key success factors of public-private partnerships (PPP) water projects. Factors such as utility condition problems, unsustainable increase in water supply requirements, socio-technical issues and changes in government policies can cause such capital-intensive projects to overrun planned budget and schedule allocations. Where the project is a commercial asset, delayed completion time and cost overruns usually have significant impact on the profitability of the project as well as the estimated returns on investment over the operational phase of the project. Understanding the specific risks involved in PPP water projects can be very crucial in designing containment measures to deal with their likely impact on the projects. Through the combination of review of literature and questionnaires, different risk elements in PPP water projects were first identified. The identified elements were then rated and prioritized using the Analytical Network Process (ANP) to demonstrate the complex interactions among those risks and to establish the most salient Value-for-Money (VFM) variables on PPP water projects. The outcome of this research is an innovative ANP-based model known as the “Water-Specific PPP Risk Model” that offers a platform to incorporate tangible and intangible risk variables into a risk assessment process in water infrastructure projects