Development of a business model for diagnosing uncertainty in MRP environments

Over the last thirty years, Materials Requirements Planning (MRP) based systems have become commonplace within batch manufacturing environments, but are still widely held to be under performing. This research hypothesises that there may be inherent problems associated with the application due to uncertainties that exist within dynamic operating environments. Research has highlighted both the absence of any business model that uses a structured and systematic approach to deal with uncertainty holistically and the lack of any widely used, consistent performance measures to allow comparison of research results. The industrial need for such a holistic approach became apparent from survey work, which showed MRP under-performed in the presence of uncertainty even when numerous Buffering and Dampening (BAD) approaches were applied. A business model of uncertainty that structures the causes and effects of uncertainty as a hierarchy of four levels has been proposed, to be verified and validated through industrial survey and simulation respectively. The relationship between causes and effects in the business model has been verified from survey results using Analysis of Variance (ANOVA), which identified twenty-three significant uncertainties within Mixed-Mode (MM) operating environments. Using a multi-product, multi-level dependent demand MRP simulation model within an MM operating environment driven by planned order release, an experimental programme has been carried out that showed finished products delivered late to be insensitive as a performance measure. Parts Delivered Late (PDL) was found to be more sensitive and has been adopted as the preferred measure. ANOVA on the simulation results validated the cause-and-effect relationships, showing that the higher the level of uncertainty, the worse was delivery performance. Individual uncertainties produced effects that were not discretely recognised in the literature. `Knock-on' effects are created by uncertainties delaying the issue of batches and affected particular Bill of Materials chains. `Compound' effects are caused by uncertainties affecting resource availability and also induced consequent knock-on effects. Simulation results also showed that late deliveries from suppliers, machine breakdowns, unexpected or urgent changes to schedules affecting machines and customer design changes are the most significant uncertainties within the parameter levels modelled. Several significant two-way and three-way interactions were found. The business model of uncertainty represents a practical and pragmatic attempt to act as a diagnostic tool to identify significant underlying causes affecting PDL for MM companies using MR1, enabling more effective application of suitable BAD approaches. Using the business model to drive a continuous improvement programme that monitored both levels of uncertainty and PDL would allow internal and external benchmarking for the efficacy of BAD approaches and for the reduction of uncertainties

Softer perspectives on enhancing the patient experience using IS/IT

Purpose – This paper aims to argue that the implementation of the Choose and Book system has failed due to the inability of project sponsors to appreciate the complex and far-reaching softer implications of the implementation, especially in a complex organisation such as the NHS, which has multifarious stakeholders. Design/methodology/approach – The authors use practice-oriented research to try and isolate key parameters. These parameters are compared with existing conventional thinking in a number of focused areas. Findings – Like many previous NHS initiatives, the focus of this system is in its obvious link to patients. However we find that although this project has cultural, social and organisational implications, programme managers and champions of the Connecting for Health programme emphasised the technical domains to IS/IT adoption. Research limitations/implications – This paper has been written in advance of a fully implemented Choose and Book system. Practical implications – The paper requests that more attention be paid to the softer side of IS/IT delivery, implementation, introduction and adoption. Originality/value – The paper shows that patient experience within the UK healthcare sector is still well below what is desired

Inside out: the interrelationships of sustainable performance metrics and its effect on business decision making: theory and practice

There has been an increasing interest in the use of decision-making models to achieve sustainability goal in recent decades. However, a systematic review of performance metrics, which are an important element of decision-making models to evaluate the outcomes regarding firm’s economic, environmental and social performance, is lacking. This study provides critical reflections on the current state of literature and industry development regarding sustainable performance metrics and offers concrete suggestions to guide future research. This study contributes to existing studies by (1) exploring the interrelationship between sustainable triple-bottom performance in the decision making process; (2) integrating corporate governance mechanism into decision making process for sustainable consideration; and (3) conducting a comparison between academic theory and industry practice regarding the performance metrics proposed and employe

Improving retail supply flexibility using buyer-supplier relational capabilities

Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance. </jats:sec

Exploring the challenges in implementing supplier environmental performance measurement models: a case study

This study aims to explore the challenges associated with implementing supplier environmental performance measurement models in context of a global supply chain. After a thorough literature review on the topic, a case study-based research methodology is adopted to investigate the real-life perspective of the issues encountered while evaluating the supplier performance in a sustainable supply chain. An in-depth study of one of the biggest fast-moving consumer goods companies in UK is discussed and analysed in this paper. Findings of this research will pave the way for developing a robust, efficient and usable environmental performance measurement framework in a supply chain

Forecasting the ecological footprint of G20 countries in the next 30 years

The Ecological Footprint evaluates the difference between the availability of renewable resources and the extent of human consumption of these resources. Over the past few decades, historical records have shown an accelerated decline in the availability of resources. Based on national footprint and biocapacity accounts, this analysis aims to advance the forecasting of the G20 countries' ecological footprints over a 30-year time frame. We employed a time series forecasting approach implemented in Python, which included-modular regression (Prophet) and Autoregressive Integrated Moving Average (ARIMA & Auto-ARIMA) methods. We evaluated and combined the performance of these three methods. The results indicated that among the largest economies of the G20, only four countries are projected to have a positive ecological footprint balance by 2050. These countries share the common denominator of large land areas and a moderate population growth projection. However, the overall trend of the indicator suggests that it will continue to decline

Synchronicity and alignment of productivity : the real value from service science?

The ability of services to pervade all aspects of productivity creates the need for an interdisciplinary framework of service to be developed. It is however critical that any proposed service framework is developed jointly between the service purveyor and the stakeholders involved. An expected outcome from a focus on productivity in the Services Science arena is that a much closer relationship between the purveyor of a service and the customer is initiated and fostered. This requires a clear focus on the requirements of the customer and the various ways in which the service can be conveyed. This is not too far removed from what is required in other areas such as product specification that should also be carefully crafted from the needs of the customer. The research utilises two case studies to highlight the impact of Services Science as a co-producer of service productivity. We find from the case studies that human factors play an extremely important role in improving service productivity

A profitability assessment of European recycling processes treating printed circuit boards from waste electrical and electronic equipments

The management of waste electrical and electronic equipment (WEEE) is a well-stressed topic in the scientific literature. However, (i) the amount of cash flows potentially reachable, (ii) the future profitability trends and (iii) the reference mix of treated volumes guaranteeing a certain profitability level are not so clear, and related data are unrecoverable. The purpose of the paper is to fill in this gap by identifying the presence of profitability within the recovery process of waste printed circuit boards (WPCBs) embedded in WEEE. Net present value (NPV) and discounted payback time (DPBT) are used as reference indexes for the evaluation of investments. In addition, a sensitivity analysis of critical variables (plant saturation level, materials content, materials market prices, materials final purity level and WPCBs purchasing and opportunity costs) demonstrates the robustness of the results. Furthermore, the calculation of the national NPV for each of the twenty-eight European nations (in function of both WPCB mix and generated volumes) and the matching of predicted WPCB volumes (within the 2015–2030 period) and NPV quantify potential advantages. The break even point of gold allowing some profits from selected recovery plants goes from 73 to 93 ppm per WPCB ton, for mobile and field plants, respectively. Finally, the overall European values go from 2404 million € (mobile plant) to 4795 million € (field plant) in 2013, with Germany and United Kingdom as reference nations

The role of customer awareness in promoting firm sustainability and sustainable supply chain management

In light of the growing complexity of globally dispersed, multi-tier supply chains; sustainable supply chain management (SSCM) has become instrumental in the quest for achieving sustainability compliance along the supply chain. This study investigates how sustainability capability develops within a firm, and then extends to SSCM. Using a fixed-effect model and a global dataset of 2,206 firms between 2002 and 2015, this study shows that a firm’s information environment, proxied by their customers awareness, has a significantly positive effect on their sustainability performance, and on their implementation of SSCM. Our analysis suggests that the influence of a firm’s information environment on a firm’s SSCM performance is mediated by the firm’s own sustainability capability. We also find that this relationship is affected by stakeholder engagement. This research is relevant because, by investigating the factors that influence the development of SSCM, it provides guidance for firms that wish to achieve sustainability improvements in their supply chains during an era when the natural environment, social responsibility and the related strategic opportunities have increased in importance