Conceptualising the impact of information asymmetry on through-life cost: case study of machine tools sector

Information asymmetry (IA) in terms of contextual variety and importance is one of the most challenging aspects of through-life costing in product-service systems (PSS). IA is an imbalance in the information, data and knowledge shared among the parties involved in a contractual agreement. In manufacturing systems under PSS, interaction and effective communication among several parties who are involved in a contractual agreement, rely on the continuity and accuracy of information and context. In such systems, contextual variety exhibits complexity and uncertainty in through-life costing and subsequently in PSS cost assessment. Although the economic aspect of PSS has been studied previously, the impact of IA on through-life cost and for different PSS solutions has not been detailed. Considering manufacturing value chains, this paper introduces a new concept of PSS-hierarchy to perform through-life costing in the presence of IA for various PSS solutions. Moreover, this paper proposes a generic life-cycle model for different PSS solutions to assess the total cost of ownership (TCO). The proposed model has been developed to support decisions on contract design in manufacturing systems. This study considers the manufacturer, service provider and customer perspectives to develop the TCO model using a machine tool manufacturing case study

Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?

Manufacturing companies in Malaysia have never had it so tough. They are now confronting increasing prices of oil and raw materials, high advancement in innovation and technology, as well as high customer expectation on the quality of products and services. In addition, managers of these companies are well aware of the increasing competitive pressures in the world market. It is clear today that these pressures are due largely to the increased performance of those firms that have successfully implemented quality improvement.This paper presents the findings from an empirical study examining the relationship between quality management (QM) practices and profitability in the electronics and electrical industry in Malaysia. It is said that QM has the potential to not only enhance production efficiency and effectiveness, but also improves bottom-line results. Much has been written about the relationship between QM and performance. However, the link of QM practices to profitability in the electronics and electrical industry in Malaysia has not been fully addressed in empirical studies. To address this issue, this paper investigates the impact of QM practices on profitability in the Malaysian electronics and electrical industry using correlation, multiple regression,and hierarchical regression analyses. The findings revealed that quality measurement, supplier relations, and benchmarking in particular, appear to be of primary importance and exhibit significant impact on profitability. Findings of the study provided a striking demonstration of the importance of implementing effective QM practices for the electronics and electrical industry in Malaysia in enhancing its profitability. However, the study failed to provide the statistical evidence of the existence of the moderating effect of the length of QM adoption on the QM and profitability linkage

Goals/questions/metrics method and SAP implementation projects

During the last years some researchers have studied the critical success factors (CSFs) in ERP implementations. However, until now, no one has studied how these CSFs should be put in practice to help organizations achieve success in ERP implementations. This technical research report attempts to define the usage of Goals/Questions/Metrics (GQM) approach in the definition of a measurement system for ERP implementation projects. GQM approach is a mechanism for defining and interpreting operational, measurable goals. Lately, because of its intuitive nature the approach has gained widespread appeal. We present a metrics overview and a description of GQM approach. Then we provide an example of GQM application for monitoring sustained management support in ERP implementations. Sustained management support is the most cited critical success factor in ERP implementation projects.Postprint (published version

Business Process Innovation using the Process Innovation Laboratory

Most organizations today are required not only to establish effective business processes but they are required to accommodate for changing business conditions at an increasing rate. Many business processes extend beyond the boundary of the enterprise into the supply chain and the information infrastructure therefore is critical. Today nearly every business relies on their Enterprise System (ES) for process integration and the future generations of enterprise systems will increasingly be driven by business process models. Consequently process modeling and improvement will become vital for business process innovation (BPI) in future organizations. There is a significant body of knowledge on various aspect of process innovation, e.g. on conceptual modeling, business processes, supply chains and enterprise systems. Still an overall comprehensive and consistent theoretical framework with guidelines for practical applications has not been identified. The aim of this paper is to establish a conceptual framework for business process innovation in the supply chain based on advanced enterprise systems. The main approach to business process innovation in this context is to create a new methodology for exploring process models and patterns of applications. The paper thus presents a new concept for business process innovation called the process innovation laboratory a.k.a. the Ð-Lab. The Ð-Lab is a comprehensive framework for BPI using advanced enterprise systems. The Ð-Lab is a collaborative workspace for experimenting with process models and an explorative approach to study integrated modeling in a controlled environment. The Ð-Lab facilitates innovation by using an integrated action learning approach to process modeling including contemporary technological, organizational and business perspectivesNo; keywords

A framework for deriving semantic web services

Web service-based development represents an emerging approach for the development of distributed information systems. Web services have been mainly applied by software practitioners as a means to modularize system functionality that can be offered across a network (e.g., intranet and/or the Internet). Although web services have been predominantly developed as a technical solution for integrating software systems, there is a more business-oriented aspect that developers and enterprises need to deal with in order to benefit from the full potential of web services in an electronic market. This ‘ignored’ aspect is the representation of the semantics underlying the services themselves as well as the ‘things’ that the services manage. Currently languages like the Web Services Description Language (WSDL) provide the syntactic means to describe web services, but lack in providing a semantic underpinning. In order to harvest all the benefits of web services technology, a framework has been developed for deriving business semantics from syntactic descriptions of web services. The benefits of such a framework are two-fold. Firstly, the framework provides a way to gradually construct domain ontologies from previously defined technical services. Secondly, the framework enables the migration of syntactically defined web services toward semantic web services. The study follows a design research approach which (1) identifies the problem area and its relevance from an industrial case study and previous research, (2) develops the framework as a design artifact and (3) evaluates the application of the framework through a relevant scenario

Generic Process Transformation Model: Transition to Process-based Organization

The competitive global market climate of the new millennium has raised awareness of business processes as the most important management paradigm (Levi, 2002). Consequently, process elements, as well as process-based organizational solutions, have become an emergent need. However, the question is how companies should transform themselves to become more process-oriented? Many attempts under the helm of Business Process Reengineering movement were not successful in reaching benefits of lateral orientation, what additionally emphasizes the delicacy of business process transformation. Concerning the literature, there is a lack of clarity and presence of organizational change models which could provide managers with guidance for process transformation. The models are mostly focused on the transformation generally, and they do not address the specificity of a change from traditional to process paradigm. Furthermore, they are mostly single-oriented, either on the organizational elements or steps which should be taken during the change, thus only partially answering the dilemma. The purpose of the paper is to present an overview of existing transformation models which could be relevant for taking a process journey, as well as propose a Generic Process Transformation Model which should be able to ensure smooth transition, with emphasis on specific problems related to process transformation. Although the proposed model is theoretically and logically based, without empirical evidence, it represents a first step in convergence of process transformation concepts to business world. Ultimately, only its usage in a real world would or would not prove its severity.process transformation, process-based organization, organizational change, transformation models

The impact of process quality measurement on financial performance of market oriented firm

Market orientation and process quality measurement had been regarded in the literature as sources of competitive advantage for business performance.However, both these concepts had been discussed separately in their own respective academic discipline. In the context of business operation today,the organisation need to work as a team to survive in the challenging business environment. Market orientation originates from the marketing concept. On the other hand, process quality measurement originates from quality management principles and is viewed as one of its tools. Despite their importance, many organisations have not combined them in order to become a market driven and quality oriented organisation. Thus, this study investigated the impact of process quality measurement on the relationship between market orientation and financial performance of manufacturing firms in Malaysia. Although the overall results showed lack of evidence on the impact of process quality measurement on market orientation-financial performance relationships, individual results signified that process quality measurement moderate the relationship between market action and financial performance

Navigating Through the Maze of Business Process Change Methods

Business Process Management (BPM) is an approach adopted by many organizations for improving their business processes in order to serve their customers more efficiently and effectively. Literature on BPM offers a plethora of methods used as a guide when improving business processes. Some are promoted as methods for process reengineering, while others as methods for improvement, redesign, or innovation. The number of BPM methods is overwhelming, such that organizations are faced with the challenge to select one that best fits their needs. In this paper, we follow a systematic literature review approach to investigate the characteristics of existing BPM methods. We find that the ambition, nature and perspective of the methods are important to determine whether they can be used for radical or incremental process change. Our findings point to the lack of research done on methods for radical process change

A quality management based on the Quality Model life cycle

Managing quality is a hard and expensive task that involves the execution and control of processes and techniques. For a good quality management, it is important to know the current state and the objective to be achieved. It is essential to take into account with a Quality Model that specifies the purposes of managing quality. QuEF (Quality Evaluation Framework) is a framework to manage quality in MDWE (Model-driven Web Engineering). This paper suggests managing quality but pointing out the Quality Model life cycle. The purpose is to converge toward a quality continuous improvement by means of reducing effort and time.Ministerio de Ciencia e Innovación TIN2010-20057-C03-02Ministerio de Ciencia e Innovación TIN 2010-12312-EJunta de Andalucía TIC-578