Wrap-Up

Lean Aerospace Initiative Plenary Workshop presentationLA

Towards an Integration of the Lean Enterprise System, Total Quality Management, Six Sigma and Related Enterprise Process Improvement Methods

The lean enterprise system, total quality management, six sigma, theory of constraints, agile manufacturing, and business process reengineering have been introduced as universally applicable best methods to improve the performance of enterprise operations through continuous process improvement and systemic planned enterprise change. Generally speaking, they represent practice-based, rather than theory-grounded, methods with common roots in manufacturing. Most of the literature on them is descriptive and prescriptive, aimed largely at a practitioner audience. Despite certain differences among them, they potentially complement each other in important ways. The lean enterprise system, total quality management and six sigma, in particular, are tightly interconnected as highly complementary approaches and can be brought together to define a first-approximation “core” integrated management system, with the lean enterprise system serving as the central organizing framework. Specific elements of the other approaches can be selectively incorporated into the “core” enterprise system to enrich its effectiveness. Concrete theoretical and computational developments in the future through an interdisciplinary research agenda centered on the design and development of networked enterprises as complex adaptive socio-technical systems, as well as the creation of a readily accessible observatory of evidence-based management practices, would represent important steps forward

Enterprise Architecture Modeling, Design and Transformation: Defining the Missing Links

Outline - • Propose a unifying conceptual framework guiding the “front-end” of planned enterprise change (transformation) management process • Enterprise architecture design process (enterprise architecting) • Choice of enterprise architecture for emphasis • Enterprise architecture modeling strategies • Transition moves available for enterprise transformation • Show how the framework links together a number of the key design decisions that need to be considered simultaneously, under alternative combinations of major contingency condition

Evolution of the Lean Enterprise System: A Critical Synthesis and Agenda for the Future

Many aerospace enterprises and other organizations have adopted a variety of management approaches to achieve continuous process improvement, enterprise change and transformation, such as the lean enterprise system, total quality management (TQM), theory of constraints (TOC), agile manufacturing, and business process reengineering (BPR). Among them, the lean enterprise system, with its origins in the Toyota Production System (TPS), comes closest to providing a holistic view of enterprises as complex socio-technical systems embodying a mutually supportive set of precepts and practices driving enterprise operations at all levels (i.e., strategic, tactical, operational) and throughout the enterprise value stream encompassing both upstream supplier networks and downstream customerfocused activities. Lean enterprise principles and practices have evolved over many decades through a process of experimentation, learning and adaptation. A distinction is made between the basic lean enterprise system (BLES), capturing salient developments over the period between the late 1940s and mid-1990s, and the contemporary lean enterprise system (CLES), capturing major conceptual and implementation-related extensions of the basic model since the mid-1990s. The lean enterprise system, as a viable framework for explaining the structure and dynamics of modern networked enterprises, for managing them, and for improving their performance through either continuous process improvement or planned systemic change and transformation, remains a work-in-progress

Multiple solutions to the likelihood equations in the Behrens-Fisher problem

The Behrens-Fisher problem concerns testing the equality of the means of two normal populations with possibly different variances. The null hypothesis in this problem induces a statistical model for which the likelihood function may have more than one local maximum. We show that such multimodality contradicts the null hypothesis in the sense that if this hypothesis is true then the probability of multimodality converges to zero when both sample sizes tend to infinity. Additional results include a finite-sample bound on the probability of multimodality under the null and asymptotics for the probability of multimodality under the alternative

Knowledge Ingtegration in Large-Scale Organizations and Networks - Conceptual Overview and Operational Definition

Knowledge integration is an emerging discipline in organizational science where the central proposition is that the increasing complexity of products and services being developed and delivered, means that the knowledge required for production is increasingly specialized, varied (multi-disciplinary) and distributed across the organization’s internal boundaries, and as a result there is a need for organizations to continuously gather their knowledge resources in order to maintain their ability to innovate, and to sustain their competitive position in the market. In addition, the increasing scale and scope of organizational arrangements, such as multinational partnerships or multi-tiered prime-supplier arrangements commonly encountered in the aerospace, automotive and other complex product development industries, also give rise to environments of dispersed knowledge resources, thus necessitating the subsequent integration of this knowledge across external boundaries spanning large-scale organizational networks. Knowledge integration in this context is done through a process of transferring knowledge from multiple sources in the organizational network to where it is needed, combining it with existing knowledge, before it can be applied to accomplish complex tasks and to solve major problems. The primary purpose of this paper is to define the powerful concept of knowledge integration in large-scale organizational networks using an extensive review of the pertinent literature on knowledge in organizations. An operational definition for knowledge integration is also proposed, followed by a systematic identification and classification of the different strategies, practices, channels and mechanisms for integrating different types of knowledge across a multitude of organizational boundaries and environments

A Novel Approach to Forecasting High Dimensional S&P500 Portfolio Using VARX Model with Information Complexity

This study considers vector autoregressive models that allow for endogenous and exogeneous regressors VARX using multivariate OLS regression. For the model selection, we follow bozdogan’s entropic or information-theoretic measure of complexity ICOMP criterion of the estimated inverse Fisher information matrix IFIM in choosing the best VARX lag parameter and we established that ICOMP outperform the conventional information criteria. As an empirical illustration, we reduced the dimension of the S&P500 multivariate time series using Sparse Principal Component Analysis (SPCA) and chose the best subset of 37 stocks belonging to six sectors. We then performed a portfolio of stocks based on the highest SPC loading weight matrix, plus the S&P500 index. Furthermore, we applied the proposed VARX model to predict the price movements in the constructed portfolio, where the S&P500 index was treated as an exogeneous regressor of the VARX model. It has been deduced too that the buy-sell decision making in response to VARX (4,0) for a stock outperforms investing and holding the stock over the out-of-sample period

Comparative Analysis of Supply Chain Management Practices by Boeing and Airbus: Long-Term Strategic Implications

Research Goals and Approach: Goals - • Develop an improved understanding of emerging supply chain management strategies and practices in the commercial aerospace industry • Explore the longer-term implications of the findings for supply chain management practices in the aerospace industry in the future/ Approach - • Conduct a comparative analysis of supply chain management practices by Boeing and Airbus • Focus on two large development programs -- the Boeing 787 Dreamliner and the Airbus A380 Navigator • Concentrate on the common set of suppliers supporting both programs to develop a sharp “compare-and contrast” perspective, looking at Boeing & Airbus from the vantage point of these common suppliers • Capture bottom-up “supplier’s voice” to complement “top-down” perspective, while controlling for any “embellished” top-down view from the two companie