scholarly journals Assessing leanness level with demand dynamics in a multi-stage production system

2016 ◽  
Vol 27 (5) ◽  
pp. 614-639 ◽  
Author(s):  
Rehab Ali ◽  
Ahmed Deif
Keyword(s):  
Production System ◽  
Production Management ◽  
Dynamic Environment ◽  
Content Type ◽  
Means Testing ◽  
Multi Stage ◽  
Management Policies ◽  
Demand Variation ◽  
Demand Variability ◽  
The Impact

Purpose – The purpose of this paper is to present a dynamic model to measure the degree of system’s leanness under dynamic demand conditions using a novel integrated metric. Design/methodology/approach – The multi-stage production system model is based on a system dynamics approach. The leanness level is measured using a new developed integrated metric that combines efficiency, WIP performance as well as service level. The analysis includes design of experiment technique at the initial analysis to examine the most significant parameters impacting the leanness score and then followed by examining different dynamic demand scenarios. Two scenarios were examined: one focussed low demand variation with various means (testing the impact of demand volumes) while the second focussed on high demand variation with constant means (testing the impact of demand variability). Findings – Results using the data from a real case study indicated that given the model parameters, demand rate has the highest impact on leanness score dynamics. The next phase of the analysis thus focussed on investigating the effect of demand dynamics on the leanness score. The analysis highlighted the different effects of demand variability and volumes on the leanness score and its different components leading to various demand and production management recommendations in this dynamic environment. Research limitations/implications – The presented lean management policies and recommendations are verified within the scope of similar systems to the considered company in terms of manufacturing settings and demand environment. Further research will be carried to extend the dynamic model to other dynamic manufacturing and service settings. Practical implications – The developed metric can be used not only to assess the leanness level of the systems which is very critical to lean practitioners but also can be used to track lean implementation progress. In addition, the presented analysis outlined various demand management as well as lean implementation policies that can improve the system leanness level and overall performance. Originality/value – The presented research develops a novel integrated metric and adds to the few literature on dynamic analysis of lean systems. Furthermore, the conducted analysis revealed some new aspects in understanding the relation between demand (variability and volume) and the leanness level of the systems. This will aid lean practitioners to set better demand and production management policies in today’s dynamic environment as well as take better decisions concerning lean technology investments.

Training autonomous managers for a dynamic environment

2018 ◽  
Vol 32 (4) ◽  
pp. 719-731
Author(s):  
M. Valle Santos ◽  
Rosa M. Mayoral
Keyword(s):  
Academic Performance ◽  
Evaluation System ◽  
Teaching Strategy ◽  
Self Regulation ◽  
Dynamic Environment ◽  
Motivational Orientation ◽  
Self Directed Learning ◽  
Content Type ◽  
The Impact ◽  
The Evaluation System

PurposeThe purpose of this paper is to explore self-regulated learning among university students, the role played by motivation and its impact on academic performance. This paper presents a teaching strategy aimed at self-regulation which draws on the educational value provided by the evaluation system.Design/methodology/approachThis research includes a quantitative analysis to examine the dependency relation between self-regulation, motivational orientation and academic performance. The impact of the teaching strategy on the relation between self-regulation and academic performance is also explored.FindingsThe findings indicate that self-regulation is closely linked to motivational orientation and is a determining factor in academic performance. In addition, implementing a teaching strategy focussing on self-regulation alters said relation.Practical implicationsThis research reflects the value of fostering the level of student self-regulation with a view to enhancing not only their current learning, but also the self-directed learning that will ensure professional success. The research also evidences the potential of the evaluation system for encouraging the development of self-regulation.Originality/valueThe conclusions to emerge from this research will help educators gain an awareness of the usefulness of strengthening student self-regulation and the potential offered by the evaluation system as a teaching resource. This research also merges extremely interesting elements – student self-regulation and the evaluation system – which to date have not been explored jointly.

scholarly journals Impact Size and Determinants of Indirect Cost of Financial Distress: Role of Receivable and Inventory Management

2020 ◽  
Vol 16 (2) ◽  
pp. 179-207
Author(s):  
Umar Farooq ◽  
Muhammad Ali Jibran Qamar ◽  
Krishna Reddy
Keyword(s):  
Indirect Cost ◽  
Inventory Management ◽  
Financial Distress ◽  
Multi Stage ◽  
Initial Stage ◽  
Non Linear ◽  
Management Policies ◽  
Internal Operations ◽  
The Impact

This research investigates the opportunity cost as an indirect cost of financial distress from two perspectives. First, indirect cost is estimated using multi-stage financial distress and non-linear proxy of debt. Second, receivable and inventory management are studied as determinants of indirect cost. The sample includes ongoing Pakistani firms that were healthy in the previous year and documenting positive gross profit. Results showed that firms bear opportunity loss primarily due to leverage rather than multistage financial distress. However, a non-linear relationship is found between leverage and indirect cost. Results further explored the impact of multistage financial distress on internal operations, i.e., working capital policies. It is found that firms manage receivable and inventory simultaneously during the multistage financial distress. Results revealed that increasing receivables and decreasing inventory is suitable during the transition of healthy firms to initial stage of financial distress, i.e., profit reduction. However, decreasing receivables, along with holding more inventory, is recommended for healthy firms that face liquidity problems subsequently. It is concluded that managers can reduce the indirect cost after deploying the optimal debt ratio and recommended receivable and inventory management policies.

scholarly journals The influence of firm, industry and concentrated ownership on dynamic capital structure decision in emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Razali Haron ◽  
Naji Mansour Nomran ◽  
Anwar Hasan Abdullah Othman ◽  
Maizaitulaidawati Md Husin ◽  
Ashurov Sharofiddin
Keyword(s):  
Capital Structure ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Dynamic Environment ◽  
Order Theory ◽  
Ownership Concentration ◽  
Content Type ◽  
Dynamic Panel Model ◽  
The Impact ◽  
Dynamic Capital Structure

Purpose This study aims to evaluate the impact of firm, industry level determinants and ownership concentration on the dynamic capital structure decision in Indonesia and analyses the governing theories. Design/methodology/approach This study uses the dynamic panel model of generalized method of moments-System (one-step and two-step) by using a panel data from 2000 to 2014 to examine the relationship between the determinants and leverage. The results are robust to the various definitions of leverage, heterogeneity, autocorrelation, multicollinearity and endogeneity concern. Findings Growing firms and firms operating in a highly concentrated industry use high level of debt, taking advantage of the tax shield (trade-off theory). However, if the firms are operating in a highly dynamic environment, they take on less debt as to avoid bankruptcy risk. Firms in Indonesia opt for debt financing perhaps to act as a controlling mechanism to mitigate agency conflicts that may exist between the large controlling shareholders and the minority. Aged and highly profitable firms with high tangible and intangible assets and liquidity level operating in a high dynamic environment follow the pecking order theory. Research limitations/implications This study does not perform each industry regression individually. All the industries are pooled together, as the main focus of this study is to examine the factors affecting leverage of firms in general without giving particular attention to individual industry. Originality/value The insights on the impact of ownership concentration and industry characteristics are novel especially on Indonesia, thus fill the gap in the literature.

Mega events and seasonality: the case of the Milan World Expo 2015

2019 ◽  
Vol 31 (1) ◽  
pp. 61-86 ◽  
Author(s):  
Ruggero Sainaghi ◽  
Aurelio G. Mauri ◽  
Stanislav Ivanov ◽  
Francesca d’Angella
Keyword(s):  
Performance Metrics ◽  
Research Question ◽  
Seasonal Patterns ◽  
Content Type ◽  
Demand Structure ◽  
Hotel Performance ◽  
World Expo ◽  
Demand Variation ◽  
Mega Event ◽  
The Impact

Purpose This paper aims to explore the effects generated by the Milan World Expo 2015 on both firm performance and seasonality structure. It aims to answer the following research question: Did the Milan Expo 2015 influence only hotel results without changing seasonal patterns, or was this mega event able to reconfigure seasonal periods? Design/methodology/approach The present analysis is based on Smith Travel Research (STR) data. This source offers daily data on a large sample of Milan hotels (approximately 80 per cent of the total), representing more than 30,000 rooms. The empirical data relate to a period of 12 years, 11 of which are focused on the pre-event period (2004-2014), while 2015 is centered on the Milan Expo. This data comprise 4,383 daily observations. For each day, three operating measures were analyzed: occupancy, average daily rate (ADR) and revenue per available room (RevPAR). Findings The empirical findings fully support the first hypothesis: the four seasonal periods built around the main market segments are relevant lenses for understanding Milan’s demand structure before Expo 2015. The findings also support the second hypothesis relating to the effects generated by the event: Expo 2015 was able to improve hotel performance during the four seasonal periods analyzed. The most fragile seasonality registered the highest rise. Finally, the last two hypotheses to be investigated are as follows: did the Milan Expo 2015 simply improve hotel performance, without changing the underlying seasonal patterns (H3), or did this event reconfigure the demand structure (H4)? The analyses carried out lend more support to the fourth hypothesis, suggesting that new seasonal patterns emerged during Expo 2015. Originality/value This paper explores the impact of a mega event on seasonal patterns of hotel performance metrics. At least three original aspects are introduced. First, to analyze the Milan demand variation, a market segment approach that proposes an innovative seasonal matrix is developed. This is based on the three main client groups attracted by the destination. Second, the effects generated by the Expo are measured with consideration given to the four seasonal periods. Third, based on graphical and statistical analysis, the paper confirms that new seasonal patterns emerged during the Expo.

Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets

2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Petri Nets ◽  
Information Sharing ◽  
Bullwhip Effect ◽  
Colored Petri Nets ◽  
Content Type ◽  
Multi Stage ◽  
The Impact ◽  
Serial Supply Chains

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

Key audit matters: insight from audit experts

2019 ◽  
Vol 27 (3) ◽  
pp. 472-494 ◽  
Author(s):  
Milton Segal
Keyword(s):  
Design Methodology ◽  
Academic Research ◽  
Small Sample ◽  
Content Type ◽  
Interpretive Approach ◽  
Management Policies ◽  
Audit Reports ◽  
The Impact ◽  
The Relationship ◽  
Complete Account

Purpose Key audit matters (KAM) and their impact on the auditor is a relatively understudied area. The purpose of this study is to analyse whether auditors perceive that the recent requirement for auditors of listed companies to report KAMs has enhanced the transparency of audit reports or not, what additional risks they now face, how the risk is being managed and its impact on the relationship with their clients. Design/methodology/approach The paper uses an interpretive approach for detailed interviews with some of South Africa’s leading audit experts to highlight their perspective of the impact of KAM on audit reporting and the audit environment. Findings The experts have various perceptions of what makes a matter “key”. These vary from materiality, to subjectivity and difficulty, as well as incorporating a time-based consideration. Concerns identified include a significant increase in cost and an increase in potential liability, triggering the need for thorough internal risk management policies. The audit experts conclude that KAM has ultimately failed to achieve its goal of greater transparency, with clients virtually ignoring KAM reports. Research limitations/implications The research relies on a relatively small sample of subject experts and may not provide a complete account of the view of all audit professionals and KAM reports issued. It analyses the impact of KAM from the preparers’ perspective. Originality/value This study contributes to the research conducted in this topical area. Although there has been research on KAM focusing on pre-implementation consequences, there is virtually no formal academic research on the impact KAM has had on audit partners and firms in South Africa post implementation. It may also serve as a basis for the IAASB to consider going forward.

Venture capital and the financial crisis in Portugal: the VC managers’ viewpoint

2016 ◽  
Vol 23 (4) ◽  
pp. 1032-1056 ◽  
Author(s):  
Carlos Cabral-Cardoso ◽  
Maria Céu Cortez ◽  
Luísa Lopes
Keyword(s):  
Venture Capital ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Dynamic Environment ◽  
Small Dimension ◽  
Control Mechanisms ◽  
Structured Interviews ◽  
Cumulative Impact ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to examine, from the venture capital (VC) managers’ perspective, the impact of the international financial and sovereign debt crises on the VC industry in Portugal, and the changes and adjustments VC managers were forced to adopt to their procedures and current practices to cope with these challenges. Design/methodology/approach A two-step research design was adopted to best capture the dynamics of the crisis. Data were collected through in-depth semi-structured interviews and content analysed. The initial set of interviews with ten VC managers was conducted in 2011, immediately before the country bailout; and the second set in 2013, when the full impact of the debt crisis was being felt. Findings The study shows that the crises had a significant impact on the VC industry producing a complex and dynamic environment with high levels of uncertainty. The VC managers’ contradictory perceptions reflect their own struggle to figure out the best way to deal with the pressures in such a volatile environment where new opportunities may also arise. In general, VC firms became more selective adopting a more prudential attitude and tighter control mechanisms. Originality/value This study contributes to the field by analysing, from the VC managers’ perspective, the cumulative impact of the international financial and sovereign debt crisis on a European VC market with specific features: small dimension of the industry operating in a bank-centred capital market and where family-owned SMEs predominate.

scholarly journals The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: a conceptual model towards a competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes W.F.C. van Lieshout ◽  
Jeroen M. van der Velden ◽  
Robert J. Blomme ◽  
Pascale Peters
Keyword(s):  
Competitive Advantage ◽  
Conceptual Model ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Organizational Ambidexterity ◽  
Organization Studies ◽  
Content Type ◽  
Research Fields ◽  
The Impact

PurposeEstablishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation.Design/methodology/approachThe authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique.FindingsOrganizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox.Originality/valuePrevious research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.

The impact of lean practices on the operational performance of SMEs in India

2019 ◽  
Vol 119 (2) ◽  
pp. 317-330 ◽  
Author(s):  
Vinod Yadav ◽  
Rakesh Jain ◽  
Murari Lal Mittal ◽  
Avinash Panwar ◽  
Andrew Lyons
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Production Management ◽  
Operational Performance ◽  
Equation Modeling ◽  
Lean Thinking ◽  
Content Type ◽  
Lean Practices ◽  
The Impact ◽  
The Relationship

PurposeAlthough lean thinking is deemed to be a gold standard of modern production management, a lot of scepticism still remains regarding its applicability in small- and medium-sized enterprises (SMEs). The purpose of this paper is to understand the perception of lean in SMEs and establish the relationship between lean adoption and operational performance.Design/methodology/approachWith the help of a survey, data were collected from 425 SMEs in India and analyzed using structural equation modeling.FindingsOperational performance of the firms was found to be positively related to lean implementation.Originality/valueThis study also furnishes practitioners with a better understanding of lean thinking in SMEs and its impact on performance.

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