International Journal of Management and Decision Making (6 papers in press)
- Empirical Research of Multi-Criteria Decision Making Methods Used to Evaluate Bids for Public Contracts in The Czech Republic
by Lucie Vrbova
Abstract: Multi-criteria decision making methods are used to select the best bids for public contracts. Due to strict legal regulations, only a few methods are possible to use for public contracts. This paper analyses multi-criteria decision making methods and their suitability for public contracts. Research performed in the Czech Republic in 2013 found that contracting authorities strongly prefer to use the weighted sum approach in connection with one type of transformation for quantitative criteria. They treat all criteria with the same value functions that are convex for minimizing criteria and linear for maximizing. In 60 % of criteria, the contracting authorities limited the bidders in admissible values of criteria or defined the reference value.
Keywords: Bids evaluation; public contracts; multi-criteria decision making; contractor selection; multiple criteria evaluation; linear transformation; quantitative criteria; value functions; weighted sum approach; admissible limits for criteria; abnormally low tender prices
- Probabilistic Risk Analysis of Safety Management System Failure and Impact on Economic Performance: The Case of Jet Engine Manufacturing
by Jose Pereira, Ricardo Bordeaux, Luiz Peres Zotes, Gilson B.A. Lima, Osvaldo Luiz Gonçalves Quelhas
Abstract: It is widely known that operational accidents affects the productivity of manufacturing industry and evidences show that the adoption of a safety management system can influence the economic performance. Decision-makers do not normally use probabilistic risk analysis to evaluate the effects of the safety management failure on costs. To remedy this problem, this paper presents a method to perform probabilistic risk analysis of safety system failure and analysis of the impact on costs and economic performance. In this context and to meet this objective, an in depth literature research was conducted to identify the main elements of a safety system and a field research was conducted with experts in overhaul of jet engines to identify the factors affecting the safety system failure, the probability of their occurrence and the impact on cost. As a result, this paper presents a method that can guide safety managers and executive managers on how to perform probabilistic risk analysis of safety system failure and how to analyze the effects of the different system elements on the economic performance of jet engine manufacturing system. This method utilizes Design Thinking and Bayesian Belief Network. The current study demonstrates that the failure of different system elements influence the costs of operation and that a probabilistic risk analysis of system failure leads to a better safety system performance and consequently to a better economic performance. This study adds to the growing understanding that probabilistic risk analysis of safety system failure and associated costs is essential for safety operation and for competitive performance in jet engine manufacturing system.
Keywords: Safety Management System, Probabilistic Risk Analysis, economic performance, jet engine manufacturing
- Assessing Transaction Efficiency for Biomass: A Case Study of the Upper Peninsula of Michigan
by Guilherme Signorini, R. Brent Ross, H. Christopher Peterson
Abstract: In concordance to the Renewable Portfolio Standard program, the state of Michigan promotes generation of renewable electricity through the Renewable Energy Plan. Despite policy efforts, performance figures reveal an industry that has not gained the momentum one would expect. This article focuses on five biomass-related transactions aiming to diagnose whether input transactions have performed as transaction cost economics (TCE) would predict. Based on qualitative analyses, results show that the coordination mechanism adopted by logging firms and biomass processors have led parties to experience hold-up problems. The paper concludes with an alternative strategy to alleviate hold-ups and devise an efficient market for biomass.
Keywords: renewable energy, bioelectricity, emerging markets, hold-up problems
- Crisis Management under an Economic Recession in Construction: The Greek Case
by Eleni Sfakianaki, Theoharis Iliadis, Manolis Zafeiris
Abstract: Construction is an important sector in promoting competitiveness and economic growth. It runs high risks and it is vulnerable to internal and external events. However, economic crises can affect a number of parties including individuals, companies of any size or even the whole country to various extents. The construction industry in Greece has been severely hit by the financial crisis of recent years. Crisis management plans are therefore essential for minimising economic losses and for company survival. Limited research currently exists on crises in construction, as the majority of research focuses on understanding how crises occur rather than studying responses to them. In this respect, a combination of crisis, risk and disaster management methods and applications are examined as background information for the proposed research framework. This research study consists of two parts. First, it briefly examines the performance of the Greek construction sector over recent years against crises by means of a questionnaire survey. The survey results and literature findings are used to propose a crisis management framework for construction companies with the aim of preparing companies against unwanted events, such as an economic recession, with guidelines on how to react before, during and after the crisis. The papers aims are therefore twofold: (1) to review the current situation in the Greek construction sector and (2) address the gap in the current literature by proposing a framework for determining optimal crisis management, particularly against economic events.
Keywords: crisis management, construction, recession, Greece
- Classifying the Attributes of the Competent Greek Construction Project Manager
by Georgios Aretoulis, Konstantinos Zapounidis, Panagiotis Papaioannou, Aikaterini Seridou
Abstract: The objective of this paper is to highlight the attributes of the competent construction project manager and propose representative groups of these construction project managers characteristics. Forty - seven required attributes of a PM were identified and prioritized through a questionnaire survey that recorded 305 responses from project engineers. IBM SPSS was used to apply cluster and factor analysis and identified representative groups of attributes. The number of proposed groups was based on an effort to verify the findings from both factor and cluster analysis and facilitate the interpretation of results. The latter approach led to 15 groups of attributes.
The research results reflect the views and conceptions of Greek engineers regarding the profile of the competent construction Project Manager, based on their professional experience. Research identified a set of fundamental, value-added, latent attributes which could serve as criteria for the selection of the most competent Project Manager in a more practical, objective, reliable and more easily assessable way.
Keywords: Construction Project Managers, Competencies, Cluster Analysis, Factor Analysis, Grouping of Attributes, Engineers
- Using Fuzzy TOPSIS method for optimizing Olive agro-engineering processes based on Geo-Spatial Technologies
by Giada La Scalia, Rosanna Sciortino, Francesco Paolo Marra, Tiziano Caruso, Juliane Ruhl
Abstract: In Southern Italy, the olive oil sector is an important part of the primary sector and its development requires support from research to ensure its sustainability. This work proposes the first step for set up a Decision-Support System (DSS) for establishing mechanization in agricultural operations for different olive groves. To contribute to this goal researches have been carried out to test the ability of Remote Sensing (RS) and Geographic Information System (GIS) to map olive groves and their agronomic characteristics. In detail, this study aimed to classify olives grove areas in terms of agronomic suitability and detect horticultural characteristics of olive groves in order to develop a fuzzy multicriteria decision making method for managing mechanical harvesting and pruning. The detection and interpretation of horticultural traits was conducted on two different olive groves areas of Sicily. Results demonstrate that fuzzy Topsis can be a useful decision making tool combined with the automatable methodology for data acquisition.
Keywords: Olive groves, Agricultural management, Remote Sensing (RS), Geographic Information System (GIS), Fuzzy Topsis.