International Journal of Advanced Operations Management (8 papers in press)
An integrated QFD & ANP model for improving the quality of financial services in consulting engineering firms
by Changiz Valmohammadi, Mahmoud Zamani, Vida Zolfaghari
Abstract: The main aim of this study is to identify the needs to improve the quality of financial services in consulting engineering firms in Iran. For this purpose, an integrative approach of ANP & QFD has been applied. The method of data collection in this paper is divided into two library and field study with questionnaire and expert interview as the main tools. The sample of this survey is composed of financial experts and senior officials of the surveyed company. Delphi technique was used to identify the requirements of the financial sectors customers and then the requirements have been prioritized using ANP technique. Finally, technical requirements and financial strategies have been ranked using QFD technique.The most important customer needs have been identified and prioritized. Transparent system of payment is identified as the most important criterion. After determining the most important customer requirements, technical requirements for meeting them were prioritized and strategies were proposed. Cash management of the company has been identified as the most important financial strategy to meet customers needs. Firms that emphasize to improve the quality of financial services for their customer will benefit from the obtained results as a guideline towards creating a road map to fulfill their customers requirements based the identified priorities and the application of the best identified financial strategy.
Keywords: Quality of Services; Financial Services; ANP (Analytic Network Process); QFD (Quality Function Deployment); Delphi method; Consulting engineering firms; Iran.
An Integrated Production-Distribution Planning with Transshipment Between Warehouses
by Dibyajyoti Ghosh, Sandeep Mondal
Abstract: Integrated production-distribution planning has become a notable area of interest for researchers and practitioners in the last two decades. Transshipment is an important phenomenon in the planning specially when products are needed to be shared among different market locations. In this paper, a production-distribution planning model for a two echelon supply chain including plants-warehouses and customer regions is proposed, considering transshipment among the warehouses. The problem is described in two parts. In the first part a discusion on general transshipment problem is discussed and in the second part the model is modified for use in dairy industry as a special case. In dairy industry, the shelf life of the products are smaller as compared to other products. The primary objective of this paper is to minimize the total cost using some typical strategies, comprising of three conditions of productioncost, i.e. at normal production rates, applying outsourcingand at over time production; inventory holding costs; backordering cost; changing workforce level; transshipment cost and transportation cost. Further Genetic Algorithm is used to find the solution to a specific case problem. Finally, some meaningful conclusions mere drawn.
Keywords: Production-distribution planning; transshipment; Genetic Algorithm.
Analysing Performance-Based Contract for manufacturing systems using Absorbing State Markov Chain
by Dinesh Kumar Unni Krishnan, Pradipta Patra
Abstract: In this paper we analyse a performance based contract (PBC) scenario where the customer procures a product manufacturing equipment from an original equipment manufacturer (OEM). Subsequently the OEM is rewarded or penalized based on the output i.e. conformance of manufactured products to target specifications. In the scenario where target specifications are not met, the OEM needs to rework and repair the equipment at his/her own cost. The rework and repair phase continues until the target specifications are met with. We use an absorbing state Markov chain to model and analyse the rework and repair phase. We provide long term probability of satisfying the target specifications, the average number of steps (rework and repair) required to meet target specifications. We also provide the optimal equipment design specification parameter (for example, design reliability) that OEM should set. Further, the optimal revenue earned by the OEM under this PBC is discussed.
Keywords: Maintenance; Performance Based Contract; Reliability; absorbing state Markov chain.
An Analytical Framework for Supplier Evaluation and Selection: A Multi-criteria Decision Making Approach
by Shivani Bali, Shivdasini Singh Amin
Abstract: With widespread globalisation, companies are under intense pressure to find ways to cut production and material costs to survive and enhance the product quality to sustain their competitive position in their respective markets. A good supplier is a key resource for a buyer in reducing such costs, improving productivity and quality of the product. Hence, evaluation and selection of potential suppliers has become an important component of supply chain management. Traditionally, procurement is considered as buying the material at cheapest price that maximizes the buyers profit. But this does not necessarily lead to an optimal situation for all the members of a supply chain. Procurement should make the best value buy, not just the cheapest buy. This paper attempts to propose an analytical framework for supplier evaluation and selection using Analytical Hierarchy Process (AHP) and Linear Programming Problem (LPP). Supplier selection is an intricate process. This process needs evaluation of multiple criteria and various constraints associated with them. A case of auto parts manufacturing firm is analysed. After analysing the case, the suppliers were ranked based on their performance using AHP technique and LPP is then adopted to determine the optimum quantity to be procured from each of the best ranked supplier.
Keywords: Supply Chain Management; Supplier Evaluation; Optimal Supplier Selection; Procurement; Analytical Hierarchy Process; Multi-criteria decision making.
A Model for Measuring Success of an Organizational Management System
by Mohammad Ali Hatefi
Abstract: Today, businesses and industries have focused on projects of implementing management systems like strategic management, information systems, and project management. The literature on such systems shows that, in spite of their importance, a general success indicator has not significantly explored. Hence, the main goal of the current research study is to design an indicator to quantify the success of project through deeply assessment of key success factors. The proposed model takes into account four aspects of management systems: organization, human, software, and hardware. The opinions of a group of experts are elicited for identifying key success factors and weighting them. The proposed indicator is a valuable tool in the conceptual phase of any management system project. Taking a proactively notice to this indicator reduces the resource wastes and direct managers to start projects in a productive manner.
Keywords: Organizational management system; Project success; Key success factor; Critical success factor; Eigen-vector; Pair-wise comparison.
Application of MOORA Method for Benchmarking Decision in Indian Industries
by Bhupender Singh
Abstract: The selection of decisions becomes multifaceted as decision makers in service environment have to evaluate a wide range of alternatives based on contradictory criteria. These decisions are more complicated as the numbers of attributes are dependent on critical success factors for particular industry. Thus in realistic problem for service industries, it is difficult to identify the benchmark model in competitive scenario to sustain superlative in their areas. Therefore, the constraint of novel and simple method that may recognize paramount decision for selection complementary to Multi Attitude Decision Making (MADM) methods. A multi-objective optimization on the basis of ratio analysis approach (MOORA) method is applied in this study where three different examples for MOORA application which consist of 1) Selection of best alternatives, 2) Ranking of Internal assessment for benchmarking in an industry and 3)Ranking of different types of benchmarking process as per their usage are considered. With applications of multi-objective optimization on the basis of MOORA, becomes easier as comparison to other MADM methods for solving diverse decision making problems in concurrent service environment which is sympathetic for executives in alternatives selection and their attributes to pursue benchmark.
Keywords: MOORA; Benchmarking; Service Industries; Ranking; MADM.
Introducing a Bi-level model to optimize the distribution network design and assembly line balancing
by Reza Samizadeh, Sahar Vatankhah, Saedeh Aghagoli
Abstract: In this research, a Bi-level model was introduced to optimize the design of supply chain network and assembly line balancing. The three-level considered supply chain includes factories, assembly lines and customers. The factories produce the raw material needed for assembly lines to produce final products. The assembly lines produce final products and deliver them to customers to cover their demand. Also, these assembly lines balance their line simultaneously. The operation time for assembly line, the cost of operation and customer's demand were considered as uncertain variables. Finally, this model was run on some data to evaluate its capability.
Keywords: Assembly line balancing; supply chain network; Bi-level programming; demand uncertainty.
DOES SUPPLY CHAIN INVOLVEMENT IMPROVE THE NEW PRODUCT DEVELOPMENT PERFORMANCE? A PARTIAL LEAST SQUARE-STRUCTURAL EQUATION MODELLING APPROACH
by Arsalan Najmi, Abraz Ahmed
Abstract: An increased market competition and customers changing preferences leading to the emergence of a need to involve relevant functions of supply chain as well as strategic customers and suppliers in the early stages of New Product Development. Therefore, this study examines the impact of supply chain involvement on new product development performance. Data was collected from 280 professionals from different departments of manufacturing companies in Pakistan who are engaged in the process of new product development and partial least square-structural equation model was applied. The results revealed that internal involvement is the base of external involvement including customers and suppliers, revealing insight into the "black box" of supply chain involvement. The research further emphasize on the fact that the companies should first improve internal involvement before they can accomplish external (i-e customer and supplier) involvement. Moreover, it is also recommended that organizations need to grow great connections, offer data, and tackle issues mutually among internal functions and with outside supply chain partners while developing new products. The study further discussed the results whereas directions for future researchers are also given.
Keywords: Internal Involvement; Customer Involvement; Supplier Involvement; New Product Cost; New Product Speed; Market Performance.