Logistics Costs Behavior and Management in the Auto Industry

2015 ◽  
Vol 31 (4) ◽  
pp. 389-408 ◽  
Author(s):  
Marcela M. Porporato
Keyword(s):  
Real Life ◽  
Systems Design ◽  
Management Control ◽  
Data Availability ◽  
Manufacturing Companies ◽  
Bottom Line ◽  
Related Data ◽  
Profitability Analysis ◽  
Confidentiality Agreement ◽  
Cost Behavior

ABSTRACT This case, based on a real-life situation of how logistics costs function in daily operations, aims to provide students with the opportunity to understand how logistics costs are calculated and how the inter-organizational nature of these costs affects the profitability of two companies. The case hinges on understanding cost behavior (fixed and variable) and on management control systems design. Although logistics costs represent a small fraction of total costs in manufacturing companies, they can negatively affect the bottom line if left unattended. Students are presented with data relating to a three-year project in the automotive industry that shows that the project has been experiencing a sustained increase in costs that has eroded its profit margin. While it appears that logistics costs are the problem, it cannot be verified until the contracts are studied. In addition, the financial- and contract-related data provided are sufficient to extend the profitability analysis to the provider of logistics services. This case is suitable for management accounting courses at the master's or advanced undergraduate level; it has been tested and well received by students who want to gain a greater understanding of logistics costs—their nature, behavior, possible containment strategies, and inter-organizational effects. Data Availability: Some of the data are from public sources, but the logistics contracts and cost schedules are private; the confidentiality agreement with the two companies requires masking certain details and modifying the numeric data.

Using Fixed Wages for Management Control: An Intra-Firm Test of the Effect of Relative Compensation on Performance

2019 ◽  
Vol 32 (3) ◽  
pp. 137-154
Author(s):  
James W. Hesford ◽  
Nicolas Mangin ◽  
Mina Pizzini
Keyword(s):  
Control Mechanism ◽  
Employee Performance ◽  
Management Control ◽  
Data Availability ◽  
Efficiency Wage ◽  
Ex Post ◽  
Confidentiality Agreement ◽  
Market Wage ◽  
Wage Theory ◽  
Performance Based Compensation

ABSTRACT Efficiency wage theory predicts employers can elicit better employee performance ex post by paying higher fixed compensation ex ante, relative to the market wage. Relative compensation may thereby constitute an alternative control mechanism when performance-based compensation is difficult to implement. Using proprietary data from 436 hotels in a U.S. lodging chain, we find that relative compensation is positively associated with performance, and additional profits associated with higher compensation exceed the wage increase. Relative compensation has a larger impact on profit when tasks are more complex and a smaller impact on profit, revenue, and quality when chain monitoring is stronger. Finally, the magnitude of the relation between relative compensation and financial performance (nonfinancial) is larger (the same) for employees earning more than the median wage compared with those earning less. Overall, our results are consistent with assertions that higher relative compensation attracts more capable candidates and mitigates shirking, but provide little support for reciprocity. Data Availability: The confidentiality agreement with the firm that provided data for this study precludes revealing its identity and disseminating data.

Performance Target Revisions in Incentive Contracts: Do Information and Trust Reduce Ratcheting and the Ratchet Effect?

2015 ◽  
Vol 90 (5) ◽  
pp. 1755-1778 ◽  
Author(s):  
Jasmijn C. Bol ◽  
Jeremy B. Lill
Keyword(s):  
Structural Changes ◽  
Data Availability ◽  
Performance Information ◽  
Ratchet Effect ◽  
Past Performance ◽  
Performance Targets ◽  
Positive Performance ◽  
Confidentiality Agreement ◽  
To Receive ◽  
Performance Target

ABSTRACT In this study, we examine a setting where principals use past performance to annually revise performance targets, but do not fully incorporate the past performance information in their target revisions. We argue that this situation is driven by some principals and agents having an implicit agreement where the principal “allows” the agent to receive economic rents from positive performance-target deviations that are the result of superior effort or transitory gains by not revising targets upward, while the agent “accepts” target revisions by not restricting output when these revisions are the result of structural changes in the operation's true economic capacity. Although both the principal and the agent can benefit from an implicit agreement, we argue that for the implicit agreement to be maintainable, the principal either needs information on the cause of the performance-target deviation or there needs to be trust between the principal and the agent. Using archival data across multiple years and independent bank units, we find a pattern of ratchet attenuation and output restriction that is consistent with the existence of implicit agreements for those principal-agent dyads where information asymmetry is sufficiently reduced or mutual trust exists. Data Availability: Data used in this study cannot be made public due to a confidentiality agreement with the participating firm.

scholarly journals Data Dentistry: How Data Are Changing Clinical Care and Research

2021 ◽  
pp. 002203452110202
Author(s):  
F. Schwendicke ◽  
J. Krois
Keyword(s):  
Health Care ◽  
Data Sharing ◽  
Clinical Care ◽  
Open Data ◽  
User Interaction ◽  
Data Availability ◽  
Related Data ◽  
Data User ◽  
Regulatory Data ◽  
Consumer Data

Data are a key resource for modern societies and expected to improve quality, accessibility, affordability, safety, and equity of health care. Dental care and research are currently transforming into what we term data dentistry, with 3 main applications: 1) medical data analysis uses deep learning, allowing one to master unprecedented amounts of data (language, speech, imagery) and put them to productive use. 2) Data-enriched clinical care integrates data from individual (e.g., demographic, social, clinical and omics data, consumer data), setting (e.g., geospatial, environmental, provider-related data), and systems level (payer or regulatory data to characterize input, throughput, output, and outcomes of health care) to provide a comprehensive and continuous real-time assessment of biologic perturbations, individual behaviors, and context. Such care may contribute to a deeper understanding of health and disease and a more precise, personalized, predictive, and preventive care. 3) Data for research include open research data and data sharing, allowing one to appraise, benchmark, pool, replicate, and reuse data. Concerns and confidence into data-driven applications, stakeholders’ and system’s capabilities, and lack of data standardization and harmonization currently limit the development and implementation of data dentistry. Aspects of bias and data-user interaction require attention. Action items for the dental community circle around increasing data availability, refinement, and usage; demonstrating safety, value, and usefulness of applications; educating the dental workforce and consumers; providing performant and standardized infrastructure and processes; and incentivizing and adopting open data and data sharing.

The Impact of Client and Misstatement Characteristics on the Disposition of Proposed Audit Adjustments

2011 ◽  
Vol 30 (2) ◽  
pp. 103-124 ◽  
Author(s):  
Jennifer Joe ◽  
Arnold Wright, and ◽  
Sally Wright
Keyword(s):  
Financial Reporting ◽  
Internal Controls ◽  
Data Availability ◽  
Audit Firm ◽  
Sarbanes Oxley ◽  
Big 4 ◽  
Time Period ◽  
Confidentiality Agreement ◽  
Financial Scandals ◽  
The Impact

SUMMARY We present evidence on the resolution of proposed audit adjustments during a unique time period, immediately following several U.S. financial scandals and surrounding calls for reforms in auditing and financial reporting, which culminated in the passage of the Sarbanes-Oxley Act (SOX). During this period, auditors and their clients faced increased scrutiny from investors and regulators. In addition, auditors had to contend with changed incentives, a new external regulator (i.e., the PCAOB), and upcoming annual PCAOB inspections. We extend prior studies by considering a broader range of factors potentially impacting the resolution of proposed adjustments, including the effect of client tenure, strength of internal controls, and repeat adjustments. Data on 458 proposed adjustments are obtained from the working papers of a sample of 163 audit engagements conducted during 2002 by a Big 4 firm. We find that 24.2 percent of proposed adjustments were subsequently waived. The results indicate audit adjustments are more likely to be waived for clients with whom the audit firm has had a longer relationship, although the pattern does not reflect favoring such clients. We also find that adjustments are more likely to be waived for repeat adjustments. Data Availability: Due to a confidentiality agreement with the participating audit firm the data are proprietary.

Unraveling the Black Box of Cost Behavior: An Empirical Investigation of Risk Drivers, Managerial Resource Procurement, and Cost Elasticity

2015 ◽  
Vol 90 (6) ◽  
pp. 2305-2335 ◽  
Author(s):  
Martin Holzhacker ◽  
Ranjani Krishnan ◽  
Matthias D. Mahlendorf
Keyword(s):  
Financial Risk ◽  
Demand Uncertainty ◽  
Empirical Investigation ◽  
Health Planning ◽  
Data Availability ◽  
Cost Elasticity ◽  
Cost Structures ◽  
Cost Behavior ◽  
Prior Literature ◽  
Contract Labor

ABSTRACT This paper extends prior literature on cost behavior by providing insights into how firms achieve changes to cost structure in response to two important risk drivers, i.e., demand uncertainty and financial risk. Using theory from labor economics, supply-chain management, and finance, we posit that demand uncertainty and financial risk influence cost management activities. Specifically, we argue that firms are likely to alter resource procurement choices to increase cost elasticity in response to these two risk drivers. We use data from California hospitals that allow for the calibration of three distinct resource procurement choices that increase cost elasticity: outsourcing, leasing of equipment, and hiring contract labor. Mediation analysis using 2,202 hospital year observations indicates that both demand uncertainty and financial risk influence cost elasticity. Importantly, these effects are mediated by the three aforementioned resource procurement choices. Overall, our findings support the view that firms make procurement choices to manage the risk associated with cost structures. Data Availability: Data used in this study are publicly available from the Office of Statewide Health Planning and Development (see: http://www.oshpd.ca.gov/). JEL Classifications: I18; M41.

scholarly journals Lean & Green on Industry 4.0 Context – Contribution to Understand L&G Drivers and Design Principles

2021 ◽  
Vol 6 (5) ◽  
pp. 1214-1229
Author(s):  
Lenin John ◽  
Manuel Sampayo ◽  
Paulo Peças
Keyword(s):  
Industry 4.0 ◽  
Research Work ◽  
Design Principles ◽  
Manufacturing Companies ◽  
Bottom Line ◽  
Industrial Firms ◽  
Systems Implementation ◽  
Sustainability Concept ◽  
Proper Definition ◽  
Definition Of

The purpose of this paper is to demonstrate how the implementation of Lean & Green (L&G) in an Industry 4.0 (I4.0) environment can enhance the potential impact of the L&G approach and help manufacturing companies moving towards higher operational and sustainable performances. The research work developed here shows that although a proper definition of L&G is neither exposed worldwide nor explicitly implemented under that name, the current industrial firms are deeply concerned about the demanding challenge of keeping businesses flexible and agile without forgetting strategies to minimize the acceleration of climate change. So, one contribution of this paper is the identification and characterization of L&G drivers and design principles, supporting a robust and well-informed L&G systems implementation. As inferred from the research work, this challenge demands high quality and updated data together with assertive information. Thus, the implementation of L&G in I4.0 contexts is the answer to overcome the identified barriers. Likewise, an L&G system contributes to overcoming the challenges of I4.0 implementation regarding the triple bottom line sustainability concept. Consequently, another contribution of this paper is to depict why an L&G system performs better in the I4.0 context.

scholarly journals Data safe havens to combine health and genomic data: benefits and challenges

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Kerina H Jones ◽  
Arron S Lacey ◽  
Brian L Perkins ◽  
Mark I Rees
Keyword(s):  
Association Studies ◽  
Genomic Data ◽  
Population Level ◽  
Data Availability ◽  
Genome Wide Association Studies ◽  
Related Data ◽  
Research Areas ◽  
Individual Privacy ◽  
Access Controls ◽  
Health Related

ABSTRACTObjectivesData safe havens can bring together and combine a rich array of anonymised person-based data for research and policy evaluation within a secure setting. To date, the majority of available datasets have been structured micro-data derived from routine health-related records. Possibilities are opening up for the greater reuse of genomic data such as Genome Wide Association studies (GWAS) and Whole Exome/Genome Sequencing (WES or WGS). However, there are considerable challenges to be addressed if the benefits of using these data in combination with health-related data are to be realized safely. ApproachWe explore the benefits and challenges of using genomic datasets with health-related data, and using the Secure Anonymised Information Linkage (SAIL) system as a case study, the implications and way forward for Data Safe Havens in seeking to incorporate genomic data for use with health-related data. ResultsThe benefits of using GWAS, WES and WGS data in conjunction with health-related data include the potential to explore genetics at a population level and open up novel research areas. These include the ability to increasingly stratify and personalize how medical indications are detected and treated through precision medicine by understanding rare conditions and adding socioeconomic and environmental context to genomic data. Among the challenges are: data availability, computing capacity, technical solutions, legal and regulatory frameworks, public perceptions, individual privacy and organizational risk. Many of the challenges within these areas are common to person-based data in general, and often Data Safe Havens have been designed to address these. But there are also aspects of these challenges, and other challenges, specific to genomic data. These include issues due to the unknown clinical significance of genomic information now or in the future, with corresponding risks for privacy and impact on individuals. ConclusionGenomic data sets contain vast amounts of valuable information, some of which is currently undefined, but which may have direct bearing on individual health at some point. The use of these data in combination with health-related data has the potential to bring great benefits, better clinical trial stratification, epidemiology project design and clinical improvements. It is, therefore, essential that such data are surrounded by a properly-designed, robust governance framework including technical and procedural access controls that enable the data to be used safely.

scholarly journals Design as a space of compromise between the global and the local

2021 ◽  
pp. 38-44
Author(s):  
Olga Zheleznyak
Keyword(s):  
Regional Development ◽  
Real Life ◽  
Systems Design ◽  
The Real ◽  
Basic Ideas

The contradictory integrity of the global and the local is viewed as a source of transnational and regional development. Design is an important aspect of glocalization, which ensures the “formulation” and introduction of basic ideas into the real life, and a space of compromise and interaction between the global and the local. It is clearly demonstrated by contemporary branding systems. Design as a scientific and educational space is presented in glocal discourses through the work of the Design Department of INRTU.

scholarly journals MANAGEMENT PRACTICES AND COST SYSTEM DESIGN: EVIDENCE FROM JORDANIAN MANUFACTURING COMPANIES

2020 ◽  
Vol 8 (1) ◽  
pp. 920-929
Author(s):  
Majdy I. Zuriekat
Keyword(s):  
System Design ◽  
Management Practices ◽  
Systems Design ◽  
Just In Time ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Cost System ◽  
Study Results ◽  
Managerial Implications ◽  
Study Questionnaire

Purpose: The purpose of this study is to reveal and examine the nature of costing systems design alongside the usage of new manufacturing practices in Jordanian Manufacturing Companies. Design/Methodology/Approach: For carrying out the study, 86 managers from 43 manufacturing companies received the study questionnaire from which 56 were valid for data analysis. The study results are presented using multiple regression analysis. Findings: The results using multiple regressions indicate that Just in Time (JIT), Total Quality Management (TQM) and Product Diversity (PD) has a significant influence on costing systems design. Implications: This study provides evidence on the importance of using management practices as a driver for companies to use a broader perspective for designing costing systems. Responding managers have now empirical evidence regarding the manufacturing practices needed to design costing systems to their companies. Originality/Value: This is the first attempt to examine the manufacturing practices as a driver for cost system design. The study also provides significant managerial implications on how to use manufacturing practices to ensure better cost system design.

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