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The Measurement Nightmare: How the Theory of Constraints Can Resolve Conflicting Strategies, Policies, and Measures

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... -Une interrogation du contrôle de gestion Faisant face aux incohérences entre la TOC et la comptabilité de coût, Goldratt a publié deux documents (Goldratt, 1988a(Goldratt, , 1990 qui ont suscité un intérêt renouvelé parmi les partisans de la TOC pour réviser le cadre de la comptabilité de coût. Son travail, en parallèle avec ceux d'autres auteurs (Fry and Cox, 1989 ;Weston, 1991 ;Fry, 1992 ;Lockamy and Cox, 1994 ;Srikanth and Robertson, 1995 ;Cox et al., 1998 ;Lockamy and Spencer, 1998 ;Smith, 2000), a conduit au développement d'un système d'indicateurs de performance. Ce système, nommé ...
... Traditionnellement, les managers décident sur la base des coûts des produits ou des services qui sont déterminés par absorption des coûts, produit d'un transfert des pratiques de comptabilité financière en comptabilité de gestion (Smith, 2000). Cependant, l'introduction des approches par les coûts variables et le Direct Costing a favorisé les décisions basées sur la contribution au résultat du produit ou du service. ...
... Les partisans de la réforme exposent que le contrôle de gestion traditionnel souffre d'anciennes hypothèses qui ne s'accordent plus avec les systèmes de production flexibles. Comme formulé parSmith (2000), « la théorie supportée par la comptabilité financière est valide pour rapporter les activités du passé ; cependant, les actions nécessaires pour maximiser les Throughput et le Cash Flow maintenant et dans le futur ne sont pas les mêmes que pour minimiser le coût unitaire local et maximiser le bénéfice ...
Article
Theory Of Constraints (TOC) is the name given to tools and techniques dedicated to problem solving and decision making created by Dr. Eliyahu M. Goldratt at the beginning of the 1980s. It is clear that there are neither research, nor publications in France on TOC. The concept of constraint is the outcome of a thinking process which lead E. M. Goldratt from a mechanistic posture on operations in organizations to a systemic perception in which this concept dominates, like in mathematics or linear programming. Experiments for 3 years within a French midsize company lead to the contextualization of the usage of TOC elements. They provide a lot of answers to our research questions and allow the assessment of potential contributions, but also of limitations of TOC management approaches mobilized.
... Per la modellazione e la simulazione dei processi si utilizzano metodologie come idef, cimosa, dsm ecc. [cimosa, 1993;Draft Federal Information, 1993;Mayer, Menzel, Painter, De Witte, Blinn e Perakath, 1995;Ulrich e Eppinger;2000]. Tali strumenti consentono di integrare tra loro "viste" complementari su: organizzazione, funzioni, attività, risorse coinvolte, flussi (fisici e informativi). ...
... Esempi recenti di applicazioni in tal senso li troviamo nei lavori di Beaumon (1999), Leong e Ward (1995), Neely (1998) e New e Szwejczewski (1995). L'area che forse ha dedicato maggiori sforzi in questa direzione è quella della letteratura manageriale [Brown, 1996;Dixon et al., 1990;Kaydos, 1999;Ling e Goddard, 1988;Lockamy III e Spencer, 1998;Lynch e Cross, 1995;Maskell, 1991;Melnyk e Christensen, 2000;Smith, 2000]. ...
... In letteratura si trovano molti esempi di descrizione di processi mediante "indicatori di prestazione". Per esempio, come si è già visto nel primo capitolo a proposito dei processi manifatturieri, alcuni tipici indicatori possono essere la difettosità di prodotto, la regolarità del flusso produttivo, il rispetto dei vincoli temporali, la variabilità della produzione, la flessibilità del processo, e così via [Brown, 1996;Kaydos, 1999;Galbraith, Miller e Greene, 1991;Maskell, 1991;Smith, 2000]. Un'enfasi particolare è anche rivolta ai cosiddetti indicatori di performance nella progettazione, potendo questi condizionare pesantemente le fasi successive del ciclo di vita di un prodotto [Galbraith e Greene, 1995]. ...
... Under sizing the buffer will leave the constrained capacity resource open to starvation and lost throughput for the entire plant. Over sizing the buffer will increase operating expenses and cycle time, Smith (2000) divides the buffer into three zones, green, yellow and red zones (Smith, 2000). When a job does not enter the buffer on schedule, it creates a "hole" in the buffer. ...
... Under sizing the buffer will leave the constrained capacity resource open to starvation and lost throughput for the entire plant. Over sizing the buffer will increase operating expenses and cycle time, Smith (2000) divides the buffer into three zones, green, yellow and red zones (Smith, 2000). When a job does not enter the buffer on schedule, it creates a "hole" in the buffer. ...
... The methods of DBR scheduling and buffer management mentioned in this paper have been developed from those proposed by Noreen, et al. (1995), Smith (2000) and McMullen (1998). There are three parameters in the methods used to control the buffer size. ...
Article
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Any real world system must have at least one constraint to limit the system from achieving its objective. How to make good use of constraints is of vital importance to increase the efficiency of the system. In this paper, an approximate algorithm consisting of two stages of approaches is proposed for solving the real world problems. The first stage of approach called Basic Approach (BA) is proposed for searching a suboptimal solution with non-relaxing resources. The second stage of approach called Buffer Management Approach (BMA) is proposed for improving the solution obtained from BA and excluding the situations of violating restrictions by relaxing resources. According to the complicacy, diversity and limited resources of real world problems, an idea of relaxing resources is embedded in the second stage of approach. The methods of Drum-Buffer-Rope (DBR) scheduling and buffer management are used in the approaches for excluding the constraints in the process and increasing the efficiency of the system. The proposed algorithm is applied to solving the Loading Allocation and Scheduling Problems (LASP) in real world. By combining the two stages of approaches, the proposed algorithm is considered to be effective and adaptive for solving a real world problem with complicated restrictions.
... Advocates of reform state that traditional cost accounting suffers from antiquated assumptions that no longer fit highly flexible manufacturing systems. As stated by Smith (2000), ''the theory behind financial accounting is valid for the purpose of reporting past activities; however, the actions necessary to maximize throughput and cash flow now and in the future are not the same as minimizing local unit cost and maximizing short-run reported net income'' (p. 44). ...
... Faced with continued incongruence between TOC and cost accounting, Goldratt published two manuscripts (Goldratt, 1988a(Goldratt, , 1990) that incited renewed interest among TOC proponents in overhauling the cost accounting framework. His work, along with that of others (Fry and Cox, 1989;Weston, 1991;Fry, 1992;Lockamy and Cox, 1994;Srikanth and Robertson, 1995;Cox et al., 1998;Lockamy and Spencer, 1998;Smith, 2000), lead to the development of a processfocused performance measurement system which focuses the organization on actions that improve overall financial performance. This framework, called Throughput Accounting (TA), consists of nine interrelated measurements for use at various organizational levels which have been shown to be valid in the context of economic theory (Fry, 1992;Spencer, 1994). ...
... Commonality in the cloud elements allows for the production of the core conflict cloud (CCC). The CCC provides significant insight to the underlying conflict, simplifying production of the CRT (Button, 1999(Button, , 2000Smith, 2000;Chaudhari and Mukhopadhyay, 2003;Reid and Cormier, 2003). A related application is the eight question storyline approach (Cox et al., 2003(Cox et al., , 2005, which facilitates EC construction by requiring answers to generic questions that clarify the situation and focus the tool on underlying problems. ...
Article
In 2004, the Theory of Constraints celebrated its Silver Anniversary. In twenty-five years, what started out as a scheduling software has evolved into a management philosophy with practices and principles spanning a multitude of operations management subdisciplines. As the Theory of Constraints has grown, so has its acceptance by both practitioners and academicians. At this point in its development, as it transitions from niche to mainstream, it is important to review what has been accomplished and what deficiencies remain so that both the promise and problems impeding greater acceptance can be examined. To that end, we review the evolution of principal TOC concepts and practices in an objective fashion.
... Przeważnie kieruje nią myśl, że może zaspokoić swoją potrzebę, postępując w sposób odbierany przez otoczenie jako negatywny. Należy więc pokierować młodą osobę tak, aby samodzielnie znalazła alternatywny sposób zaspokojenia swojej potrzeby, a więc wykorzystać kolejne narzędzie -"chmurkę" 18 . ...
... Pierwowzorem "chmurki" jest technika ulatniającego się obłoku, zwana inaczej wyparowującą chmurą. Ma ona za zadanie pomóc w uświadomieniu, 18 jakie czynniki determinowały przez cały czas określone zachowania i sposób zarządzania organizacją 20 . Przyczyny trudności, z którymi boryka się przedsiębiorstwo, często powiązane są z trudnym do rozwiązania konfliktem. ...
Article
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Article aims to bring the ‘Theory of Constraints for Education’, which is an alternative educational activities, diversifying and enriching the educational process. The program was developed three logical tools, enjoying great popularity among teachers and educators in twenty-two countries in the world.
... Academics claim that conventional accounting practices encourage behavior that is detrimental to an organization's longterm goal of boosting profitability (Goldratt, 1990). Since TA focuses on behaviors that foster higher levels of financial performance, it has been marketed as a superior technique of measuring performance (Smith, 2000). ...
Article
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Studies on supply chains and logistics focus mostly on the manufacturing, pharmaceutical, and service sectors while paying little attention to the cold chain food sector. The environmental factors that Nigeria's agro-based cold chain business must deal with are examined in this paper. The study highlighted economic, financial, governmental/regulatory, transportation/logics, and infrastructure as the primary environmental factors that act as hurdles to the functioning of agro-based cold chain enterprises in Nigeria. The study suggests that in order to improve food quality, guarantee food safety, reduce waste, and increase the efficiency and productivity of the cold supply chain, managers and policymakers should invest more resources and focus on these factors. The study recommended more investigation into the impacts of environmental factors on the operation of agro-based cold chain enterprises using methodologies like correlation or structural equation modeling (SEM). Future studies should also determine which of these environmental factors makes it most challenging for Nigeria's agro-based cold chain economy to function.. Abstract
... Thus, the adoption of an advanced S & OP decision support system can benefit operational management practices [18]. Performance measurement is a critical aspect to success within S & OP [30][31][32]. From this perspective, some authors claim that sometimes the objective should include other parameters beyond the traditional cost/profit optimisation, such as service level [18] or OTD performance [33]. Thus, the need for specific and mutually consistent supply chain metrics has been identified as a necessary aspect that can improve the integration of the different functions of the organisation, thereby contributing to increasing organisational alignment. ...
Article
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Several authors agree on the importance of integrating sales and operations (S & OP) when it comes to improving the management of organisations. Thus, the relationship between S & OP can be critical from a competitive point of view, and therefore strategic. However, most of the literature on this topic focuses on the field of repetitive manufacturing. Consequently, this work aims to enhance the scarce literature related to S & OP in organisations that produce make-to-order (MTO). The present study is an analysis of cases of two industrial companies managed according to the theory of constraints. In both cases, the relationship between sales and operations was initially poor. Their approaches were mainly founded on their experience and intuition, as well as on simple data. The development of a new approach, integrating S & OP, has demonstrated the potential advantages of integrated management. As a result, we have identified some aspects of interest from a managerial perspective. Furthermore, we consider the findings of this study to be relevant to improving the competitiveness of this kind of organisation.
... Goldratt, 1990;Srikanth & Robertson, 1995) have argued that the traditional accounting practices encourage behaviours that are inimical to the long term profit maximizing goal of organisations. Thus, TA was advanced as a better performance measurement technique which focuses on behaviours that foster higher levels of financial performance (Lockamy & Spencer, 1998;Smith, 2000). ...
Article
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Purpose:Opinions converge that airlines in Sub-Saharan Africa are passing through perilous times. Moreover, evidences of the challenges of airlines are anecdotal, with scarce empirical investigation. Using the lens of the Theory of Constraints, we identified, measured and ranked the mitigating factors of airlines operations in Sub-Saharan Africa (adopting domestic airlines in Nigeria as subjects) in line with the tradition of empiricism. Methodology-We generated 45 survey items after literature search and interviewed airline managers. We asked industry icons and gatekeepers of measurement to check for face and content validity, and collected data from a sample of 222 employees in 18 domestic airlines to conducted Exploratory Factor Analysis. Second wave of data was collected from a sample of 203 respondents, to evaluate the descriptive properties of the factors and the psychometric integrity of the data set. Findings-Exploratory Factor Analysis led to the retention of 27 items, representing five factors. Descriptive analysis reveals these challenges, as follows (in order of importance or severity):Infrastructural-, Financial-, Corporate Governance and Managerial-, Policy and Regulatory-, and Safety, Security and Environmental challenge. Conclusion-We stressed that managers and policy makers need to pay the most attention to infrastructural challenge, followed by financial challenge, Corporate Governance and Managerial,and Policy and Regulatory, while safety, security and environmental challenge should not be traded-off even if it is the least challenge. We pointed out the study's limitations and suggested generation of more items and investigations of hypothesized models on the nexus between these five factors and organizational performance, or other criterion variables.
... However, the studies are far from being a practical one, as they include too many parameters and assumptions. Smith (2000) has explained that Root Cause Tools can resolve conflicting strategies, policies, and measures. The perception is that one tool is as useful as another tool. ...
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p> Purpose: The paper aims to introduce the practical application of using Root-cause analysis (RCA) by chosen methods of continual improvement in solving non-conformity occurrence in an organisation operating in the automotive field. Methodology/Approach: The chosen tools of (RCA), which includes an extended version of 5W2H and 5Whys were applied. Both tools were systematically applied step by step in case of claim solving, which occurred in automotive production. Findings: Non-conformity, which occurred in this case, was analysed through RCA and helped not only to identify the problem but also solve it and find adequate preventive measures to avoid occurrence non-conformity in the future. Research Limitation/implication: Practical application of chosen tools shows how problems and non-conformities should be solved using systematic steps of a different tool. In some cases, if it is needed, other methods and tools can be added, as well as metrology verifications. Originality/Value of paper: The innovative element of these tools application is the introduction of the extended version of the 5W2H method from the customer’s perspective as well as from the organisation perspective. It is also clear that to solve customer’s claim, it is necessary to use a combination of more tools to make sure that that kind problem is not going to occur in the future.
... The goal of the authors was to first identify a conflict from an external perspective, with the hope of identifying other conflicts, to be able to refine the initial interpretation of underlying conflict and articulation of the stakeholders' competing needs. The Three Cloud approach (Smith, 1999) facilitated this effort by guiding exploration of additional conflict themes that emerge in the analysis. By exposing additional conflict and assumptions, this approach supports communication among stakeholders with competing objectives without creating resistance as assumptions are surfaced. ...
Conference Paper
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PMP, CSM, is an adjunct professor at Old Dominion University in the Engineering Management and Systems Engineering Department, teaching project management and agile development and leading workshops designed to improve organizational agility, and is a consultant in Agile transformation for local and federal government programs. [kcastell@odu.edu] Joseph M. Bradley-PhD, PE, has had an extensive career in ship operations, maintenance, repair and organizational design. Repeatedly called upon to start new activities for the U.S. Navy, he successfully met a succession of unique challenges. He is currently an Adjunct Research Associate at Old Dominion University and President of Leading Change, LLC. [josephbradley@leading-change.org] Sanjeev Gupta-CEO of Realization Technologies, Inc., a provider of project delivery software and services that has delivered more than $7 billion of value by helping public and private sector organizations shorten project cycle times and improve due-date performance. He has been honored with a Lifetime Achievement Award by the Theory of Constraints International Organization for his contributions to project and supply chain management. [sgupta@realization.com] Abstract A major rethink of NAVSEA's shipyard contracting strategy is required to support the critical need of improving our naval fleet availability. Operational Fleet material availability is reduced when various parts of the "NAVSEA production system" operate at cross-purposes. By increasing alignment between major players (i.e., NAVSEA and the private shipyards), major improvements in delivery performance, cost, and even throughput can be realized. Developing strategies and specific actions to do so is a rich field given the current state of the system. We take an analytical as well as evidence-based approach to propose strategies that can be successful given the peculiar conditions of ship repair and modernization.
... To understand the roots of the conflicts between traditional management accounting and the Lean philosophy (c.f. Michalicki, 2016;Smith, 2000) you need to identify the assumptions of traditional accounting systems and analyse, if these assumptions are still valid in a Lean environment. The following groups of assumptions of traditional accounting systems have been detected: ...
Conference Paper
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Lean Production Systems are the accepted benchmark for an efficient and effective production. Despite the rising prevalence of Lean in manufacturing and service companies, traditional management accounting systems are widely used unmodified in companies. This often creates distinct conflicts for the management during a Lean transformation. Traditional management accounting is a model based on assumptions that are not valid any more in today’s Lean companies. As an approach to solving this problem the paper shows the ten guiding design principles of an Accounting for Lean system. The principles were developed by an intensive literature research as well as a three-year case study in a manufacturing company. The consideration of these principles in the design of the company’s internal management accounting system creates financial information, that actively support the Lean strategy. The resulting management accounting system for Lean companies is called Capital Flow Design.
... In the current scientific literature there are many examples of process modeling by means of performance indicators. When dealing, for example, with a given manufacturing plant, indicators such as throughput, defectiveness, output variability, efficiency, etc... are commonly employed (see Chap. 1) (Brown 1996;Kaydos 1999;Galbraith et al. 1991;Maskell 1991;Smith 2000). Special emphasis is also given to the so called "design metrics", that is to say those factors that are inherent in product design, affecting one or more product lifecycle stages (Galbraith and Greene 1995). ...
Chapter
The previous chapters described indicators as helpful tools in collecting information and analysing the evolution of complex systems/processes.
... -Herremans and Ryans (1995, p. 58) Organizations have a wide range of metrics at their disposable for assessing annual performance. This process, which was first explored in the 1920s by Alfred Sloan and Donaldson Brown at General Motors, has become a crucial topic not only in the managerial literature (e.g., Kerr 2003;Smith 2000) but also across the different fields of management research (e.g., Ittner and Larcker 1998;Neely 1999). In the marketing field, performance metrics is one of the most important contemporary topics. ...
Article
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Annual company reports rarely distinguish between domestic and export market performance and even more rarely provide information about annual indicators of a specific export venture’s performance. In this study, the authors develop and test a new measure for assessing the annual performance of an export venture (the APEV scale). The new measure comprises five dimensions: (1) annual export venture financial performance, (2) annual export venture strategic performance, (3) annual export venture achievement, (4) contribution of the export venture to annual exporting operations, and (5) satisfaction with annual export venture overall performance. The authors use the APEV scale to generate a scorecard of performance in exporting (the PERFEX scorecard) to assess export performance at the corporate level while comparatively evaluating all export ventures of the firm. Both the scale and the scorecard could help disclose export venture performance and could be useful instruments for annual planning, management, monitoring, and improvement of exporting programs.
... However, the studies are far from being practical one as they include too many parameters and assumptions. Smith (2000) has explained that Root Cause Tools can resolve conflicting strategies, policies, and measures. The perception is that one tool is as good as another tool. ...
Article
Full-text available
Root-cause identification for quality and productivity related problems are key issues for manufacturing processes. It has been a very challenging engineering problem particularly in a multistage manufacturing, where maximum number of processes and activities are performed. However, it may also be implemented with ease in each and every individual set up and activities in any manufacturing process. In this paper, root-cause identification methodology has been adopted to eliminate the dimensional defects in cutting operation in CNC oxy flame cutting machine and a rejection has been reduced from 11.87% to 1.92% on an average. A detailed experimental study has illustrated the effectiveness of the proposed methodology.
... Recommendations made by the workers are not considered necessary for successful use of the TOC. Firms with hierarchical structure and centralized knowledge value this technique (Smith, 1999). ...
Article
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The theory of constraints (TOC) is a management tool, which considers any manageable system as being limited in reaching more of its objectives by some constraints. According to TOC, there is always, at least, one single constraint, and TOC implements a concentrating process to detect the constraint and restructure the remaining of the organization around it. This paper presents an overview of different perspectives of TOC and its implementation in different industries such as project management, quality management, outsourcing, product mix, make-to-buy, accounting, banking and health care, etc. The results indicate that the method has been extensively implemented in different areas of accounting.
... In the current scientific literature there are many examples of process modeling by means of performance indicators. When dealing, for example, with a given manufacturing plant, indicators such as throughput, defectiveness, output variability, efficiency, etc... are commonly employed (see Chap. 1) (Brown 1996;Kaydos 1999;Galbraith et al. 1991;Maskell 1991;Smith 2000). Special emphasis is also given to the so called "design metrics", that is to say those factors that are inherent in product design, affecting one or more product lifecycle stages (Galbraith and Greene 1995). ...
Book
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A world that is changing faster and faster forces companies to a continuous performance monitoring. Indicators give the impression to be the real engine of organizations or even the economy at large. But performance indicators are not simple observation tools. They can have a deep "normative" effect, which can modify organizational behaviour and influence key decisions. Companies are what they measure! The selection of good performance indicators is not an easy process. This monograph focuses on the designing of a Performance Measurement System (PMS), knowing that "magic rules" to identify them do not exist. Some indicators seem right and easy to measure, but have subtle, counter-productive consequences. Other indicators are more difficult to measure, but focus the enterprise on those decisions and actions that are critical to success. This book suggests how to identify indicators that achieve a balance in these effects and enhance long-term profitability.
... The TOC is composed of a considerable body of knowledge which may be summarized as including operations strategy tools, performance measurement systems, and Thinking Process (TP) tools (Gupta, 2003). The TOC method for identifying and solving organizational problems is called TP. TP tools include the various tree diagrams, evaporating clouds, and audit processes/guidelines such as categories of legitimate reservation and layers of resistance (Dettmer, 1997;Scheinkopf, 1999;Smith, 2000). The TOC approach in change management requires answering three essential questions (see Table 1). ...
Article
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This article discusses multi-methodology approaches. The authors explain that multi-methodology approaches assist in creating a complementary understanding of complexity through specific processes. A new Mohammadi–Ghazanfari model is proposed for combining the theory of constraints with systems dynamics to deal with soft problems. This model consists of two phases. The first phase is the appreciation and analysis of the problem. The second phase includes assessment and evaluation actions. The first phase is described using a subsidized milk industry study in Iran.
... The drum-buffer-rope concepts were first introduced by Eli Goldratt in The Goal and applied to the context of a manufacturing plant [3]. This foundation of TOC has been refined in the area of financial measures and buffer management by Debra Smith and others [5,9] and in the simplification of drum-buffer-rope by Schragenheim and Dettmer [6]. Covington documented an early application of TOC to a textile/apparel supply chain [2], and Walker described the application of drum-bufferrope to supply chain management [1,10,12]. ...
Article
A case study was performed to carry out a detailed description of the synchronization of the final two stages of an international supply chain for an electronics instrumentation manufacturer. The product line was transformed from a traditional MRP-driven build-to-stock manufacturing operation into a build-to-order synchronized supply chain. The transformation successfully reduced the supplier response time from an inconsistent 3-5 weeks to a consistent 10 days across all products. The practical application of Eli Goldratt's drum-buffer-rope TOC concepts to synchronize the supply chain resulted in excellent delivery performance for a medium investment in capacity, inventory, and information management. The supply chain redesign objective was accomplished, and synchronization was sustained during many months of volatile demand.
... -Herremans and Ryans (1995, p. 58) Organizations have a wide range of metrics at their disposable for assessing annual performance. This process, which was first explored in the 1920s by Alfred Sloan and Donaldson Brown at General Motors, has become a crucial topic not only in the managerial literature (e.g., Kerr 2003;Smith 2000) but also across the different fields of management research (e.g., Ittner and Larcker 1998;Neely 1999). In the marketing field, performance metrics is one of the most important contemporary topics. ...
Article
Full-text available
Annual company reports rarely distinguish between domestic and export market performance and even more rarely provide information about annual indicators of a specific export ven-ture's performance. In this study, the authors develop and test a new measure for assessing the annual performance of an export venture (the APEV scale). The new measure comprises five dimensions: (1) annual export venture financial performance, (2) annual export venture strategic performance, (3) annual export venture achievement, (4) contribution of the export venture to annual exporting operations, and (5) satisfaction with annual export venture overall performance. The authors use the APEV scale to generate a scorecard of performance in exporting (the PERFEX scorecard) to assess export performance at the corporate level while comparatively evaluating all export ventures of the firm. Both the scale and the scorecard could help disclose export venture performance and could be useful instruments for annual planning, management, monitoring, and improvement of exporting programs.
... In the case of the orthopaedic surgeon, resistance is the behavioral attempt to ward off threats to his or her long-standing supplier power. Smith 33 described six hierarchical layers of resistance manifested by persons who have been challenged to change: (1) We do not agree on the nature of the problem; (2) We do not agree on the direction of the proposed solution; (3) We do not agree that the proposed solution will solve the problem; (4) The proposed solution is feasible but will create other serious problems; (5) The proposed solution is feasible but will not work here because there are too many obstacles or because the situation here is unique; and (6) Unverbalized fear. ...
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Morrison argued that demography, economy, and technology drive the evolution of industries from a formative first-generation state ("First Curve") to a radically different way of doing things ("Second Curve") that is marked by new skills, strategies, and partners. The current health-reform movement in the United States reflects these three key evolutionary trends: surging medical needs of an aging population, dramatic expansion of Medicare spending, and care delivery systems optimized through powerful information technology. Successful transition from a formative first-generation state (First Curve) to a radically different way of doing things (Second Curve) will require new skills, strategies, and partners. In a new world that is value-driven, community-centric (versus hospital-centric), and prevention-focused, orthopaedic surgeons and health-care administrators must form new alliances to reduce the cost of care and improve durable outcomes for musculoskeletal problems. The greatest barrier to success in the Second Curve stems not from lack of empirical support for integrated models of care, but rather from resistance by those who would execute them. Porter's five forces of competitive strategy and the behavioral analysis of change provide insights into the predictable forms of resistance that undermine clinical and economic success in the new environment of care. This paper analyzes the components that will differentiate orthopaedic care provision for the Second Curve. It also provides recommendations for future-focused orthopaedic surgery and health-care administrative leaders to consider as they design newly adaptive, mutually reinforcing, and economically viable musculoskeletal care processes that drive the level of orthopaedic care that our nation deserves-at a cost that it can afford.
... The company has therefore to concentrate on its current product line most of the time. The company can have a competitive edge in marketing its product by designing an unrefusable offer, also called a Mafia offer [7], [15]. I n this case, the company examines undesirable effects created for the customer or customer's customer when buying or using the product. ...
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p>ENGLISH ABSTRACT: This article describes a way to implement the holistic approach of the Theory of Constraints (TOC) which will lead to an increase in the Economic Value Added (EVA) of a business. The approach consists of two parts: the adoption of the holistic approach, and the implementation of a new company strategy. The pitfalls in implementing a holistic approach are discussed. The elements of a company strategy that is compatible with the holistic approach are described. AFRIKAANSE OPSOMMING: Hierdie artikel beskryf ‘n metode hoe om die holistiese benadering van die Teorie van Beperkinge (TVB) te implementeer met die doel om die Ekonomiese Toegevoegde Waarde (ETW) van ’n besigheid te vermeerder. Die benadering is tweeledig: die ingebruikneming van die holistiese benadering, en die implementering van ’n nuwe besigheidsstrategie. Die moontlike probleme in die implementering van die holistiese benadering word bespreek. Die elemente van ’n besigheidsstrategie wat versoenbaar is met die holistiese benadering word beskryf.</p
Article
The study was conducted to investigate how the outbreak of COVID-19 has affected the operational performance of Nigeria domestic airlines. The study adopted a survey approach with a population of Six Hundred and Fifty-Five (655) respondents drawn randomly from full-time employees (Station Managers, Pilots, Engineers, Cabin crew and Baggage Handlers) of the five domestic airlines, Air Peace, Azman, Arik Air, Aero Contractor and Dana Airline operating at Murtala Mohammed and Nnamdi Azikiwe International Airports and a descriptive statistic was specified using Logistics Regression model. The study found that the Outbreak of the COVID-19 Pandemic affects operations, revenue, the attitude of the customer, and labor turnover of skilled professionals and ultimately affects the optimal performance of domestic airlines. It was recommended that the management of domestic airlines put up effective strategies for the management of the COVID-19 pandemic in view of its impact on the operations of domestic airlines. The a irline ope r a t o r s should s tr eng then the implementation of COVID-19 pandemic health safety protocols since it has an impact on the confidence of the flying public and that the management of domestic airlines should explore alternative means of funding to meet up with their financial requirements since the COVID-19 pandemic impacts on the revenue base of domestic airlines in Nigeria. The study concluded that for Nigerian domestic airlines to sustain their airline businesses, it is imperative that sound strategies for the management of COVID-19 impact be put in place to assure the revamping and continuous flight operation, increased revenue generation, redeeming the confidence of air passengers and retention/r e - engagement of technical/skilled professionals.
Chapter
In this chapter we make some considerations about measuring and accounting for performance, growing the system sustainably, hiring and developing individuals in the organization, what governance means and how it can be improved, and how an important, systemic shift can be achieved operationally. We stress the importance of continuous learning in the shift from silos to network.
Chapter
In the current supply chain world where instability and variability are the norm, being able to efficiently identify/diagnose the root causes of non-performance is of prime importance. Although numerous methods exist to support quantitative diagnosis step, there are very few materials regarding the qualitative dimension of diagnosis. Additionally, the rare existing methods are very time-intensive, need scarce expertise and often produce poor results. In a such context, the problem is how to make supply chain qualitative diagnoses impactful and fast. Practically, this paper develops a business process and its associated knowledge-based system, inspired by the theory of constraints’ thinking processes approach, to effectively support practitioners in their qualitative diagnosis step. A set of real industrial application cases is analyzed to discuss the implications of the contribution. It notably demonstrates that the proposal supports both increasing the impact of the diagnosis and reducing the time of the process by almost 80%.KeywordsSupply chainQualitative diagnosisTheory of constraintsThinking processesDecision support system
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