VR-PMS: a new approach for performance measurement and management of industrial systems

A new performance measurement and management framework based on value and risk is proposed. The proposed framework is applied to the modelling and evaluation of the a priori performance evaluation of manufacturing processes and to deciding on their alternatives. For this reason, it consistently integrates concepts relevant to objectives, activity, and risk in a single framework comprising a conceptual value/risk model, and it conceptualises the idea of value- and risk based performance management in a process context. In addition, a methodological framework is developed to provide guidelines for the decision-makers or performance evaluators of the processes. To facilitate the performance measurement and management process, this latter framework is organized in four phases: context establishment, performance modelling, performance assessment, and decision-making. Each phase of the framework is then instrumented with state of-the-art quantitative analysis tools and methods. For process design and evaluation, the deliverable of the value- and risk-based performance measurement and management system (VR-PMS) is a set of ranked solutions (i.e. alternative business processes) evaluated against the developed value and risk indicators. The proposed VR-PMS is illustrated with a case study from discrete parts manufacturing but is indeed applicable to a wide range of processes or systems

The impact of regional supply network structure and governance on the resilience of resource extractive regions: the case of South Australia

This thesis examines the adaptation processes among mining equipment and technology services (METS) firms’ in the South Australian resource sector from 2014 till 2016 during a global downturn in resource commodity prices. Of special interest was the effect on the METS firms of the structure and governance of the resource industry regional supply network in terms of their ability to adapt to the downturn and the implications for regional resilience. The research was driven by the common problem faced by METS suppliers operating in resource extractive economies of how to prosper in spite of fluctuating mineral commodity prices. Downturns in commodity prices usually result in significant job losses, reduction in GDP growth and economic decline. It requires resilience at the firm and regional level to not only cope and recover from external shocks, but also to create new technological paths. Previous research into the regional development of resource-extractive regions has proved that the development of technology and knowledge intensive, value-adding industries around resource extractive activity enhances the resilience of resource economies. A diverse and technology intensive METS sector emerging naturally in proximity to resource extraction sites is potentially able to use its accumulated knowledge and capabilities to overcome the consequences of a decline. In the right environment, METS firms can develop high value-added products and services that can have other industrial applications and find new niches in domestic and overseas markets. The ability of local METS companies to diversify and innovate results in the lateral transfer of technologies developed initially to serve the resource sector, encouraging regional economic diversification and the development of alternative growth paths during a decline in the resource sector. Supply chain relationships are critical to the strategic diversification and innovation of regional METS experiencing resource constraints. Their ability to innovate and diversify depends not only on their own internal research and development efforts, but mostly on their collaboration with customers and supply chain partners around customer problems and solutions. Since there are multiple shared suppliers and clients, a regional supply network serves as a conduit for information and knowledge transfer. Our knowledge of the impact of the structure and governance in a regional supply network and firm diversification and innovativeness is still limited, however. There is a lack of conceptual explanation specific to how network governance in a regional supply network influences METS firms’ ability to respond during those periods when the whole network is experiencing constrained resources. To address this problem in the current research, a multilevel conceptual framework was developed, and a mixed-method research design adopted. The findings demonstrated that formal and informal instruments of regional supply network governance impact firms’ strategies and facilitates both short- term adaptation and the long-term adaptability of regional METS. The research contributes to the economic resilience literature by providing empirical evidence of the role of regional supply network structure and governance as factors influencing regional firms’ strategies at the micro-level. In turn, the strategies and behaviour of regional METS firms at the micro level impact adaptability and regional resilience at the meso-level. Therefore, a coordinated effort by governing bodies through policies and resource allocation is required to ensure the formation of well-connected, integrated regional supply networks that can foster long term adaptability and resilience in resource extractive regions.Thesis (Ph.D.) -- University of Adelaide, Entrepreneurship, Commercialisation & Innovation Centre, 201

Interfirm IT Capability Profiles and Communications for Cocreating Relational Value: Evidence from the Logistics Industry

This study seeks to identify the means by which information technology helps cocreate relational value in the context of interfirm relationships in the logistics industry—a large and information-intensive industry. We identify a set of IT functionalities—single-location shipping, multilocation shipping, supply chain visibility, and financial settlement—that can be used to manage the flows of physical goods, information, and finances across locations in interfirm logistics processes. Progressively more advanced sets of IT functionalities, when implemented and used in the interfirm relationship to execute logistics processes, are proposed to form four distinct IT capability profiles of increased sophistication. Interfirm IT capability profiles of higher sophistication are proposed to help cocreate greater relational value by facilitating the flows of physical goods, information, and finances across locations in the interfirm logistics process. Besides their direct role in helping cocreate relational value, these interfirm IT capability profiles are proposed to further enhance relational value cocreation when complemented by interfirm communications for business development and IT development.Our empirical study was situated in one of the world’s largest logistics suppliers and over 2,000 of its interfirm relationships with buyers across industries. Integrated data from four archival sources on the IT functionalities implemented and used in interfirm logistics relationships, interfirm communications, relational value (share of wallet and loyalty), and multiple control variables were collected. The results show that the proposed interfirm IT capability profiles and interfirm communications have both a direct and an interaction effect on relational value. Implications for cocreating relational value in interfirm relationships with the aid of IT are discussed

Digital Integration: Understanding the Concept and its Environmental Predictors

This study investigates the impact of environmental factors on the decision to electronically integrate operations with international customers and/or suppliers. The following research question motivates the study: How does the environmental context affect the level of electronic integration of an organization with its international partners? This study elaborates on the concept of electronic integration. Studies on integration in general and electronic integration in particular adopt a loose definition of integration: they all agree in that integration is the opposite of markets, but they define this opposite in different terms: relationship contracting, long-term contracting, coordination, etc. Finally, the study also responds to Wathne and Heide’s (2004) call for a more comprehensive study of governance mechanisms in B2B, with emphasis on monitoring mechanisms

Rethinking the risk matrix

So far risk has been mostly defined as the expected value of a loss, mathematically PL (being P the probability of an adverse event and L the loss incurred as a consequence of the adverse event). The so called risk matrix follows from such definition. This definition of risk is justified in a long term “managerial” perspective, in which it is conceivable to distribute the effects of an adverse event on a large number of subjects or a large number of recurrences. In other words, this definition is mostly justified on frequentist terms. Moreover, according to this definition, in two extreme situations (high-probability/low-consequence and low-probability/high-consequence), the estimated risk is low. This logic is against the principles of sustainability and continuous improvement, which should impose instead both a continuous search for lower probabilities of adverse events (higher and higher reliability) and a continuous search for lower impact of adverse events (in accordance with the fail-safe principle). In this work a different definition of risk is proposed, which stems from the idea of safeguard: (1Risk)=(1P)(1L). According to this definition, the risk levels can be considered low only when both the probability of the adverse event and the loss are small. Such perspective, in which the calculation of safeguard is privileged to the calculation of risk, would possibly avoid exposing the Society to catastrophic consequences, sometimes due to wrong or oversimplified use of probabilistic models. Therefore, it can be seen as the citizen’s perspective to the definition of risk

Enterprise systems and labor productivity : disentangling combination effects

This study analyzes the relationship between the three main enterprise systems (Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM)) and labor productivity. It reveals the performance gains due to different combinations of these systems. It also tests for complementarity among the enterprise systems with respect to their interacting nature. Using German firm-level data the results show that the highest productivity gains due to enterprise system usage are realized through use of the three main enterprise systems together. In addition, SCM and CRM function as complements, especially if ERP is also in use

How to Make the Most Productive Intervention in a Complex Economic System

Information about supply and demand propagates through supply chains in a queueing network with people and computers as batch information processors. As each batch processor delays propagation of information whilst pursuing optimal local decisions, the effect is delay and distortion of the information that is used to commit resources to actions in the supply chain. This thesis investigates the effect of delay and imperfect information as a source of error, to establish the case for change in research focus from optimal exploitation of physical constraints to optimal exploitation of information. In the context of real world supply chains, the thesis asks "How does one make the most productive intervention in a complex economic system?" and pursues a meta-intervention which perpetually minimises the discovered error-term. Evidence from literature indicates that agent-based modelling permits real-time peer-to-peer communication and distributed optimisation. Based on the literature the research project designs and develops an agent-based model which operates in real-time without batch-processes and can perform incremental multi-objective optimisation under realistic (chronologically progressive) conditions for decision making. The agent based model is then used to investigate two real-world supply chains, as case studies, which reveals a significant improvement of profitability and order-fulfilment. The thesis concludes that agent-based modelling is a very promising direction for "making the most productive intervention" as it reduces delay to a minimum. Finally it recommends that continuous improvement of decision making methods is a role better suited for humans, rather than operational decision making where computers cope much better with the high amount of detailed information

Sharing Economy Last Mile Delivery: Three Essays Addressing Operational Challenges, Customer Expectations, and Supply Uncertainty

Last mile delivery has become a critical competitive dimension facing retail supply chains. At the same time, the emergence of sharing economy platforms has introduced unique operational challenges and benefits that enable and inhibit retailers’ last mile delivery goals. This dissertation investigates key challenges faced by crowdshipping platforms used in last mile delivery related to crowdsourced delivery drivers, driver-customer interaction, and customer expectations. We investigate the research questions of this dissertation through a multi-method design approach, complementing a rich archival dataset comprised of several million orders retrieved from a Fortune 100 retail crowdshipping platform, with scenario-based experiments. Specifically, the first study analyzes the impact of delivery task remuneration and operational characteristics that impact drivers’ pre-task, task, and post-task behaviors. We found that monetary incentives are not the sole factor influencing drivers’ behaviors. Drivers also consider the operational characteristics of the task when accepting, performing, and evaluating a delivery task. The second study examines a driver’s learning experience relative to a delivery task and the context where it takes place. Results show the positive impact of driver familiarity on delivery time performance, and that learning enhances the positive effect. Finally, the third study focuses on how delivery performance shape customers’ experience and future engagement with the retailer, examining important contingency factors in these relationships. Findings support the notion that consumers time-related expectations on the last mile delivery service influence their perceptions of the delivery performance, and their repurchase behaviors. Overall, this dissertation provides new insights in this emerging field that advance theory and practice