International Journal of Engineering Management and Economics (7 papers in press)
A comparative analysis of quantitative-based methods used for lean index assessment
by Omogbai Oleghe, Konstantinos Salonitis
Abstract: The lean index is a holistic measure of lean performance. Its assessment has been approached using qualitative and quantitative-based methods. While the qualitative based methods are of the self-assessment type, there is no such congruence with quantitative-based ones. This inconsistency can lead to confusion as to which quantitative-based methods should be adopted for specific situations. We attempt to address this issue by applying and comparing some quantitative-based methods within a manufacturing system case. Four methods based on Analytical Hierarchy Process, Data Envelopment Analysis, Factor Analysis and Fuzzy Logic, were set apart after a literature review, and applied to the production performance data set of the case. The methods returned different lean index results thereby providing varied information about system lean performance. Sensitivity tests revealed the Data Envelopment Analysis method to be the most robust. The results present a case for the advancement of the use of the Data Envelopment Analysis approach in mixed method (quantitative and qualitative) lean assessment.
Keywords: Lean index; lean assessment; lean performance; quantitative methods; manufacturing system.
Maintenance and reinvestment policies: framework and principles
by Hans Löfsten
Abstract: There is a lack of models that could improve the understanding of the underlying dimensions of maintenance. Many models are also large and complicated, and thus limiting the interaction between the analysis and the decision maker. Although a scheduled maintenance and reinvestment policy may reduce the number of failures, the cost of the scheduled maintenance may not reduce state costs. This paper develops a general framework and principles for maintenance and reinvestment decisions. The model in this study integrates four important dimensions (i) state of the facility (ii) maintenance (iii) reinvestment and (iv) salvage value. The financial dimension is also included in the model (a fixed budget per period). The structure of the model is to support the operative management of maintenance and reinvestment in the long run, i. e. timing of maintenance and reinvestment tasks. Four different maintenance and reinvestment policies are also developed.
Keywords: preventive maintenance; corrective maintenance; reinvestment; state cost; policy; budget constraint.
Longitudinal Targets and Persistent Inefficiency in Data Envelopment Analysis
by James Benneyan
Abstract: A typical interpretation of data envelopment analysis targets in manufacturing and other contexts is to identify performance goals that if achieved in the future will move an inefficient decision-making unit to the best practice efficiency frontier. Less discussed, however, is that this only will occur with certainty if all other units maintain their same input and output levels, an implicit assumption that is rarely the case in practice. Since this phenomenon can be important in many practical applications, this paper explores its manifestation and approaches for interpreting and setting future performance targets in this context, including forward and backward-looking analysis, forecasting, and Monte Carlo approaches. Each method is illustrated and compared using two empirical data sets.
Keywords: Data envelopment analysis; Monte Carlo simulation; production efficiency.
Technology Transfer in Construction Management: A Case of Partnership between Nigeria and China
by Udochukwu Frank Iroegbu, Rong Du
Abstract: Technology transfer is defined as high-level workforce through scientific, engineering and technical areas that influence the growth of skills, technology, and innovation in the receiving country. This study focused on Technology Transfer in Construction Management a Case of Partnership between Nigeria and China. The data for the research was retrieved from both primary and secondary sources. Questionnaires were used to collect primary data. A total of 55 registered architectures, quantity surveyors and engineers were interviewed. The respondent's rate was 87.2%. The data was analyzed using SPSS where both descriptive and inferential statistics were used in the study. The study adopted stratified random sampling. The findings show that government policy and construction sustainability affect technology transfer. However, it was revealed that there are challenges that limit the efficient transfer of technology from China to Nigeria. Future research should seek effective methods of increasing technology diffusion in Nigeria.
Keywords: Nigeria; China; Technology Transfer; Government Policy; Construction Sustainability Management.
Special Issue on: Measuring Efficiency in the Service Industries Models, Methods and Applications
Franchisees perspective on factors influencing relationship development and performance in Indian wellness industry
by Sriram K. V, Ankur Wadhwa, Lewlyn L. R. Rodrigues, Asish Oommen Mathew
Abstract: Franchising as a business strategy helps in scaling up business in a cost-effective manner and is the best option for globalization of services and products. This paper illustrates the perception of the franchisees in the Indian Wellness market for relationship development with the franchisors which will improve franchisees performance. Structural Equation Modelling (SEM) approach is used in this study. Primary data was collected from franchisees using questionnaire. A research model was developed based on the data/literature survey and hypothesis were developed for the model. Confirmatory Factor Analysis (CFA) was used to test the model. The findings of the study suggest that effective and frequent communication between franchisor and franchisee helps in building a good business relationship in the wellness industry. Trust and Commitment are very important part of this business and a healthy franchise relationship depends on this factor. The franchisor should have an effective operational infrastructure in place to have a positive influence on the performance of the franchisees. Other factors like training support and brand equity statistically did not influence the franchisee performance. This paper makes an important contribution to the field of franchising in the Wellness market by developing a model for the franchisor to successfully implement the franchising concept based on franchisees perception. The conclusions hold good for other businesses which are into franchising and suggests ideas for effective franchisee franchisor relationship.
Keywords: Franchising; Franchisor; Franchisee Performance; Structural Equation Modelling; Wellness; Confirmatory Factor Analysis; Relationship.
An Odds-Ratio Approach for Handling Proportional and Bounded Values in Data Envelopment Analysis
by Aysun Ceyhan, James Benneyan
Abstract: The usual assumption in data envelopment analysis (DEA) that all input and output values are unconstrained positive values is not always satisfied, such as when analyzing proportions, rates, and percentages bound between 0 and 1 (e.g., defect, graduation, satisfaction, or mortality rates). In such cases, solving standard constant returns-to-scale (CRS) DEA models can produce output target values that exceed their upper bounds (e.g., 130% survival or 210% market penetration). Data constrained on other intervals (e.g., patient satisfaction scores between 1 and 5) present a related problem, where a computed target theoretically can exceed its upper bound. We introduce an odds-ratio transformation for such cases that always produces targets within their given bounds and explore its impact on analysis results (efficiency scores, targets, weights), offering the modeler an alternative for evaluating relative efficiency and setting management goals when variable returns-to-scale (VRS) relationships are not appropriate.
Keywords: DEA; proportional data; bounded data; odds-ratio; constant returns-to-scale.
Performance Evaluation and Benchmarking of Indian Electricity Distribution Utilities Using Data Envelopment Analysis Along with Sensitivity Analysis
by N.K. Bishnoi, Pooja Gaur
Abstract: The present study aims to evaluate the relative efficiencies and benchmark of 55 electricity distribution utilities operating in different states in India by applying popular and effective performance evaluation method DEA (Data Envelopment Analysis). Technical, pure technical, scale efficiencies were also computed along with peer to peer comparison of inefficient utilities with efficient ones. Efficiency evaluation results with performance improvement schemes also were provided. The results indicate performance efficiency scores, input and output slack, input and output variable targets, reference group for inefficient DMUs with weights, classification of DMUs on the basis on sensitivity analysis. Based on these results, inefficient utilities can improve their performance by making strategic plans for performance improvement. This paper is one of the few published studies that benchmark the performance of Indian electricity distribution utilities by taking specific parameters of electricity utilities of India. Also, it is one of the first paper in which sensitivity based classification of Indian electricity distribution utilities is being performed to find out sensitivity of variables.
Keywords: Data Envelopment Analysis; Efficiency; Sensitivity Analysis; Electricity Distribution Utilities.