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Journal Articles

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Hospital Supplier Managed Inventories (SMI) and Supply Chain Power - By: W.C. Benton, Jr. Featured in the November, 2010 edition of the COE Newsletter

Operations in Emerging Markets: China
- a paper written by graduate students in the MBA program at The Ohio State University's Fisher College of Business.

Dynamic Capabilities Through Continuous Improvement Infrastructure
By: Gopesh Anand, Peter T. Ward, Mohan V. Tatikonda, David A. Schilling
Citation: Anand, G., et al., Dynamic capabilities through continuous improvement infrastructure. J. Operations manaage. (2009), doi: 10.1016/j.jom.2009.02.002
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Modeling Uncertain Forecast Accuracy in Supply Chains with Postponement
By: L. LeBlanc, James Hill, J. Harder, and G. Greenwell
Citation: Forthcoming Journal of Business Logistics
Abstract: We examine a situation where a manufacturer operates in a two-mode production environment. The first mode could involve overseas vendors and manufacturing facilities. If additional units are later required, the company must use its second mode—more expensive last-minute domestic vendors and manufacturing sites. We develop a new methodology for analyzing the impact of forecast accuracy on the decision to postpone production. We examine the interaction of forecast accuracy, shortage vs. holding costs, transportation costs and the cost of postponing production in this supply chain of a single product facing uncertain demand. Our model can be used to analyze the cost of important changes, such as increasing forecast accuracy, reducing the cost of backorders, lowering the cost of delaying production, or lowering transportation costs. Our model allows a firm to understand its overall cost structure so that it can accurately evaluate the impact of improved forecast accuracy and lowered costs in the context of postponement.

Explaining Anomalous High Performance in a Health Care Supply Chain
By: Shah, R., Goldstein, S.M., Unger, B. T., and Henry, T. D.
Citation: Forthcoming Decision Sciences, 39 (4)
Abstract: An implicit assumption in distributing and coordinating work among independent organizations in a supply chain is that a focal organization can use financial or contractual mechanisms to enforce compliance among the other organizations in meeting desired performance objectives. Absent contractual or financial gain, there is little incentive for independent organizations to coordinate their process improvement activities. In this study, we examine a health care supply chain in which the work is distributed among independent organizations. We use a detailed case study and an abductive reasoning approach to understand how and why the independent organizations choose to coordinate and collaborate in their work. Our study makes two contributions to the literature. First, we use well-established lean principles to explain how independent organizations achieve superior performance despite highly uncertain and variable customer demand — a context considerably different from the origins of lean principles. Second, we forward relational coordination theory to explain why the organizations in this decentralized supply chain coordinate their work. Relational coordination includes the use of shared goals, shared knowledge, and mutual respect for one another’s work as primary mechanisms to explain process improvement in absence of any contractual incentives. Our study constitutes a first step in generating theory for work design and its improvement in decentralized supply chains.
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Unraveling the Food Supply Chain: Strategic Insights from China and the 2007 Recalls.
By: Aleda V. Roth; Andy A. Tsay; Madeleine E. Pullman; John V. Gray
Citation: Journal of Supply Chain Management: A Global Review of Purchasing & Supply, Feb2008, Vol. 44 Issue 1, p22-39
Abstract: The March 2007 pet food recall and a rapid progression of comparable incidents have exposed the real potential for food supply chain contamination and disruptions. When organizations source via multilayered supply chains with poor visibility they are particularly vulnerable. In this paper, we develop a conceptual framework called the ‘‘Six Ts’’ of supply chain quality management — traceability, transparency, testability, time, trust and training—which are relevant for any product but are especially critical to the preservation of public welfare through a safe food supply. We describe the globalization of food supply chains and present data on the trends of U.S. food import volumes, both in aggregate and specifically from China. We also highlight the inherent difficulties and risks posed by global food supply chains, using those originating in China as an example. Finally, we provide a research agenda and questions to be addressed regarding the application of the six Ts in global food supply chain management.

An Investigation of the Value of Crossdocking for Supply Chain Management
By: M.R. Galbreth, James Hill, and Sean Handley
Citation: Forthcoming, Journal of Business Logistics
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A Heuristic for Single-Warehouse Multi-Retailer Supply Chains with All-Unit Transportation Cost Discounts
By: James Hill and M.R. Galbreth
Citation: European Journal of Operational Research, 187 (2), 2008, 473-482
Abstract: In supply chain management research, transportation costs, if explicitly considered at all, are frequently assumed to be linear. These costs often have a more complex form, such as an all-unit discount structure – this piecewise cost function adds significant complexity when included in supply chain management problems and is therefore often ignored due to solution time or tractability concerns. We present and evaluate a new heuristic procedure which provides good solutions to problems involving all-unit discount cost functions while significantly reducing solution times. The general nature of this procedure does not require assumptions about the supply chain structure or policies, and is therefore applicable in a wide range of settings.

 

Business Strategies and Manufacturing Decisions: An Empirical Examination of Linkages
By: Peter Ward, John McCreery, and Gopesh Anand
Citation: International Journal of Operations and Production Management, 27 (9), 2007, 951-973
Purpose – This paper seeks to investigate whether linkages, proposed by previous researchers, among business strategies and structural and infrastructural investment decisions of manufacturing are empirically supported.
Design/methodology/approach – A sample of 101 US manufacturing firms is classified into three groups based on their predominant business strategies. The classification is validated using analysis of variance (ANOVA) tests on the taxons and on the environment in which the firms operate. ANOVA tests on manufacturing investment decisions are then used to address the central question of the paper– whether the three business strategy groups differ in their emphasis on structural and infrastructural areas of manufacturing.
Findings – The three business strategy-based groups of firms, labeled broad-based competitors, differentiators, and price leaders, differ in their emphasis on several of the structural and infrastructural areas of manufacturing, thus supporting the contention of linkages among business strategy and manufacturing investment decisions.
Originality/value – The popular notion of linkages among business strategies and investments in structural and infrastructural areas of manufacturing is empirically tested.
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Defining and Developing Measures of Lean Production
By: Rachna Shah and Peter Ward
Citation: Journal of Operations Management, 25, 2007, 785-805
Abstract: Our research addresses the confusion and inconsistency associated with “lean production.” We attempt to clarify the semantic confusion surrounding lean production by conducting an extensive literature review using a historical evolutionary perspective in tracing its main components. We identify a key set of measurement items by charting the linkages between measurement instruments that have been used to measure its various components from the past literature, and using a rigorous, two-stage empirical method and data from a large set of manufacturing firms, we narrow the list of items selected to represent lean production to 48 items, empirically identifying 10 underlying components. In doing so, we map the operational space corresponding to conceptual space surrounding lean production. Configuration theory provides the theoretical underpinnings and helps to explain the synergistic relationships among its underlying components.
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3 Critical Issues in Internet Retailing
By: Ken Boyer, Timothy Laseter, Elliot Rabinovich, and Manus Rungtusanatham
Citation: Sloan Management Review, Spring 2007, 58-64
Abstract: The insights offered in this article draw on the research of the four coauthors, including work done collectively and separately with other collaborators. One source of the research has been our work with the business members of the Last Mile Supply Chain Center at Michigan State University (see www.lastmilesupplychaincenter.org). Center members include the online divisions of traditional retailers (such as OfficeMax and Albertsons), pure-play Internet retailers (such as Netgrocer.com and 1-800-PetMeds) and infrastructure providers (such as Newgistics and Descartes Systems Group). We have also worked with several other retail industry players to develop teaching cases and as consultants. Although our specific research interests vary, we share a common emphasis on empirical research. We regularly employ survey techniques to understand perceptual issues, but increasingly we seek to mine actual transactional data from company records in our research. Our goal is to employ rigorous analytic techniques to address the real-world operational problems facing the online retail industry.

 

Quality, Operational Logistics Strategy and Repurchase Intentions: A Profile Deviation Analysis
By: Ken Boyer, Tomas Hult, and David Ketchen
Citation: Journal of Business Logistics, 29 (2), 2007, 105-131
Abstract: Emerging thoughts on quality suggest that three principal sources of customer-based value creation exist for firms operating in the online marketplace. These include a focus on delivering (1) service quality, (2) product quality, and (3) eBusiness quality. Drawing on strategic choice theory coupled with configuration theory, we conducted a profile deviation analysis among customers of online grocery firms using the "ideal" quality profile for four operational logistics strategies as the benchmark (semi extended strategy, fully extended strategy, de-coupled strategy, and centralized extended strategy). The findings suggest that service, product, and eBusiness quality-based fit with operational logistics strategy type are associated with customers' behavioral (repurchase) intentions. This lends support to the notion that capitalizing on the appropriately weighted quality-focus represents a strategic vehicle to create superior outcomes in online businesses. The makeup of these ideal quality profiles that represent the strongest repurchase intentions of customers is also provided.
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An Analysis of Operation-Oriented Drivers of Customer Loyalty for Two Service Channels
By: Ken Boyer, Andrea Prud’homme, and G. Tomas Hult
Citation: Direct Marketing: An International Journal, 1 (2), 2007
Abstract:Everyone has to buy groceries regularly, and it is a chore that many people may not look forward to doing or may have difficulty performing. Until recently, except in rare instances, the only way to get groceries was to go to the store, walk up and down the aisles gathering the items needed and then head for the checkout line. The advent of online grocery ordering with home delivery or customer pick-up has introduced another option for consumers that may impact their perceptions of the service encounter. We present results from a survey of 271 traditional in-store customers and 1,720 online customers of three grocers that provide both options to their customers that allows for a comparison of customer perceptions between customer groups. The results of the study indicate that online shoppers have a higher level of satisfaction with their service encounters and a lower level of satisfaction on the tangible aspects of product quality, the range of products available and the sacrifices they make when using the grocer they have selected. The higher level of service satisfaction is the primary predictor of online customer behavioral intentions which translates materially to online shoppers spending a larger portion of their grocery dollars with their primary grocer than traditional in-store customers do.

 

Last-Mile Supply Chain Efficiency: An Analysis of Learning Curves in Online Ordering
By: Ken Boyer, Tom Kull, and Roger Calantone
Citation: International Journal of Operations and Production Management, 27 (4), 2007, 409-434
Purpose – As companies extend supply chains via direct delivery to consumers, supply chain efficiency depends upon the usability of the online ordering system. The purpose of this paper is to focus on customer order cycle efficiency gains through the “learnability” of web sites. Design/methodology/approach – The paper analyzes empirical data using nonlinear regression from seven firms and over 4,000 customers to examine how order time – an important performance metric – changes within an online grocery ordering environment.
Findings – The evidence supports various forms of power-law learning for web-based ordering (i.e. the first few orders involve substantial learning). However, significant differences exist between web sites, and a portion of the ordering time may be irreducible.
Research limitations/implications – The research lends insight into how web sites influence last-mile supply chain efficiency via differing learning rates in the order cycle. Perceptual measures were used in order to assess customer beliefs.
Practical implications – Online order entry serves as the starting point for many supply chain actions. Managers can use this research to benchmark their web site performance and subsequently take action to improve the efficiency and service of their supply chain.
Originality/value – The empirically validated model allows researchers and web-based businesses to utilize the provided learning rate measure as an ease of use performance metric.
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Managing Internet Product Returns: A Focus on Effective Service Operations
By: Ken Boyer, Diane Mollenkopf, Elliot Rabinovich, and Timothy Laseter
Citation: Decision Sciences, 38 (2), 2007, 215-250
Abstract: Product returns present one of the biggest operational challenges in the world of Internet retailing due to the sheer volume and cost of processing returns. But returns also represent an often-missed opportunity to manage customer relationships and build customer loyalty to the retailer. Based upon data from a survey of 464 customers of five different Internet retailers, this article explores how firms' returns management systems affect loyalty intentions. We draw upon extant literature in the fields of Internet retailing, service quality, supply chain management, and customer satisfaction/loyalty to develop a model and a set of hypotheses relating ten latent variables in the service returns offering area. Our resulting structural equation model provides evidence of the impact of the returns management system upon customer loyalty intentions. The model also identifies effects on loyalty intentions arising from customers' satisfaction with, and perceptions of, the value of the returns service offered. These findings will help inform managers' choices regarding investment in the returns management system as an element of service quality improvement and a potential means of improved profitability. In addition, this study's empirical exploration and testing of a returns management model in the Internet retailing environment is a contribution to the currently underrepresented body of academic literature linking marketing and supply chain management in the context of end consumers. This paper was one of five finalists for Best Paper for 2007 in Decision Sciences .
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Performance measurement system and relationships with performance results: A case analysis of a continuous improvement approach to PMS design
By: Eric O. Olsen, Honggeng Zhou, Denis M.S. Lee, Yoke-Eng Ng, Chow Chewn Chong, Pean Padunchwit
Citation: International Journal of Productivity and Performance Management, 2007, Vol.56, No. 7.
Abstract
Purpose — This study aims to address an important gap between the normative view of an integrated performance measurement system (PMS) design that assumes a clean slate and the organizational realities of a PMS design as an ongoing analysis, coordination and improvement process. Design/methodology/approach — The authors present a framework for evaluating the effectiveness of a PMS based on three criteria — i.e. causality, continuous improvement and process control — and use a case study to illustrate the application of the methodology and the interpretation of results for PMS design.

Practical implications — The framework provides a simple methodology that organizations can easily adopt to analyze individual and group performance measures and relate them to the strategic performance measures of the company.

 

Impact of Information Technology Integration and Lean/Just-in-Time Practices on Lead-Time Performance
By: Peter Ward and Honggeng Zhou
Citation: Decision Sciences, 37 (2), 2006, 177-203
Managers seeking to improve lead-time performance are challenged by how to balance resources and investments between process improvement achieved through lean/just-in-time (JIT) practices and information technology (IT) deployment. However, extant literature provides little guidance on this question. Motivated by both practical importance and lack of academic research, this article examines empirically the relationships among interfirm IT integration, intrafirm IT integration, lean/JIT practices, and lead-time performance using data from Industry Week's Census of Manufacturers (Industry Week, 2006). The results provide several new insights on the relationship between IT integration and lean/JIT practices. First, the study confirms that implementing lean/JIT practices significantly reduces lead time. Second, lean/JIT practices mediate the influence of IT integration on lead-time performance. This suggests that process improvements that result from lean/JIT practices are important contributors to the success of IT integration. Even companies that have experienced success in reducing lead time through lean/JIT practices may benefit from IT integration practices such as those embodied in enterprise resource planning systems. The findings provide managers with empirical evidence and a theoretical framework on the balance between lean/JIT and IT for effecting improvement in lead-time performance, thus offering practical guidance on this important question. Future research is needed to extend the lean/JIT practices in this study to supply chain practices and explore the relationship between supply chain practices and IT integration.
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Performance Measurement System Simplicity
By: Eric O. Olsen and Peter Ward
Citation: International Journal of Manufacturing Technology and Management, 8 (4), 2006, 330-354 Abstract: Leading researchers, consultants and practitioners advocate that internal operations performance measurement (PM) systems need to be 'simple' in order to be most effective. The notion of PM system simplicity has often been expressed as the characteristic of having few versus many measures. This paper proposes a new simplicity scale based on the importance rankings of performance measures found in a large-scale survey of manufacturing firms. The PM system simplicity scale is developed and applied in the context of traditional manufacturing strategy constructs such as cost, quality, delivery and flexibility and with respect to environmental dynamism. Analysis of empirical data on 100 manufacturing firms shows that superior market performance is associated with firms that have both complex and simple PM systems, but that moderately simple systems perform less well.

Recursive Behavior of Safety Stock Reduction: The Effect of Lead-Time Uncertainty
By: Ping Wang and James Hill
Citation: Decision Sciences, 37 (2), 2006, 285-290
Motivated by a recent paper on the effect of lead-time variability reduction on safety stocks, we provide evidence of the recursive nature of safety stock changes. When lead times follow a gamma distribution we demonstrate that, for cycle service levels between .60 and .70, the reduction of lead-time variability will first increase safety stock and then either recursively decrease safety stock or make it remain constant. We also numerically show the existence of the recursive effect. A two-by-two matrix is introduced to assist managers in making decisions regarding safety stock policy.
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Innovation-Supportive Culture: The Impact of Organization Values on Process Innovation
By: Ken Boyer, Shalini Khazanchi, and Marianne Lewis
Citation: Journal of Operations Management, 25 (4), 2006, 871-884
Abstract: For managers, innovation is vital, but paradoxical, requiring flexibility and empowerment, as well as control and efficiency. Increasingly, studies stress organizational culture as a key to managing innovation. Yet innovation-supportive culture remains an intricate and amorphous phenomenon. In response, we explore how organizational values — a foundational building block of culture — impact a particular process innovation, the implementation of advanced manufacturing technology (AMT). To unpack this scarcely studied construct, we examine three-dimensions of organizational values: value profiles, value congruence and value— practice interactions.
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Customer Behavioral Intentions for Online Purchases: An Examination of Fulfillment Method and Customer Experience
By: Ken Boyer and Tomas Hult
Citation: Journal of Operations Management, 24 (2), 2006, 124-147
Abstract: This study presents an analysis of the growing market for groceries and other foodstuffs ordered via the internet or telephone for delivery to the customer’s home. This industry has been growing for the past 5 years at greater than 25% per year while the overall market for foodstuffs has been largely stagnant. The research utilizes data from surveys of over 2100 customers of five different home delivery grocers. The analysis utilizes two group variables (customer experience level and order picking method) and five primary constructs (service quality, product quality, product freshness, time-savings and behavioral intentions). The results indicate that customer perceptions of the primary constructs generally improve as they gain experience with this new method of ordering and receiving groceries. Furthermore, the operational choice of picking method is also shown to have a large impact on customer perceptions—in particular, more experienced customers generally rate the primary constructs higher for distribution center (DC)-based picking than for store-based picking. The study provides support for the hypothesis that direct to customer foodstuffs can be of better freshness and quality when picked from a DC because of the ability to shorten the supply chain than from a store. The data suggest that a DC-based picking strategy is viable if grocers can re-shape customer perceptions and master the numerous intricacies of the supply chain.
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An Analysis of Effects of Operational Execution on Repeat Purchasing for Heterogeneous Customer Segments
By: Ken Boyer and Markham Frohlich
Citation: Production and Operations Management, 15 (2), 2006, 229-242
Winner of the 2004 Wickham Skinner Prize.
Abstract: Many retailers are increasingly turning to home delivery as a new arena of operational competition. This study controlled for industry by investigating the online home delivery grocery business, and an analysis of 1,919 customers of home delivery grocers identified four groups of online customers based on reasons for selecting this service. These four groups were next linked to operational execution in terms of service, product, and Internet quality, and found to vary in predicable ways. Subsequent to the initial data collection, five month's of post hoc longitudinal purchasing history was collected on the four groups of online customers to determine the relative profitability. Finally, as a follow-on analysis, the study used regression to predict future consumer purchases based upon operational execution. Time savings and service quality emerged as the two most important independent variables in terms of future buying from such online home delivery services.
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A methodology for constructing causal maps
By: Scavarda, A.J., Bouzdine-Chameeva, T., Goldstein, S.M., Hays, J.M., and Hill, A.V. Citation: DecisionSciences, May2006, Vol. 37 Issue 2, p263-283
Abstract: This article develops a new approach for constructing causal maps called the Collective Causal Mapping Methodology (CCMM). This methodology collects information asynchronously from a group of dispersed and diverse subject-matter experts via Web technologies. Through three rounds of data collection, analysis, mapping, and interpretation, CCMM constructs a parsimonious collective causal map. The article illustrates the CCMM by constructing a causal map as a teaching tool for the field of operations management. Causal maps are an essential tool for managers who seek to improve complex systems in the areas of quality, strategy, and information systems. These causal maps are known by many names, including Ishikawa (fishbone) diagrams, cause-and-effect diagrams, impact wheels, issue trees, strategy maps, and risk-assessment mapping tools. Causal maps can be used by managers to focus attention on the root causes of a problem, find critical control points, guide risk management and risk mitigation efforts, formulate and communicate strategy, and teach the fundamental causal relationships in a complex system. Only two basic methods for creating causal maps are available to managers today—brainstorming and interviews. However, these methods are limited, particularly when the subject-matter experts cannot easily meet in the same place at the same time. Managers working with complex systems across large, geographically dispersed organizations can employ the CCMM presented here to efficiently and effectively construct causal maps to facilitate improving their systems

 

Use of structural equation modeling in Operations Management research: Looking back and forward
By: Shah, R. and Goldstein, S.M.
Citation: Journal of Operations Management, Jan2006, Vol. 24 Issue 2, p148-169
Abstract: This paper reviews applications of structural equation modeling (SEM) in four major Operations Management journals (Management Science, Journal of Operations Management, Decision Sciences, and Journal of Production and Operations Management Society) and provides guidelines for improving the use of SEM in operations management (OM) research. We review 93 articles from the earliest application of SEM in these journals in 1984 through August 2003. We document and assess these published applications and identify methodological issues gleaned from the SEM literature. The implications of overlooking fundamental assumptions of SEM and ignoring serious methodological issues are presented along with guidelines for improving future applications of SEM in OM research. We find that while SEM is a valuable tool for testing and advancing OM theory, OM researchers need to pay greater attention to these highlighted issues to take full advantage of its potential.

 

Radio Frequency Identification Performance: The Effect of Tag Orientation and Package Contents
By: Ken Boyer, Robert Clarke, Diana Twede, and Jeff Tazelaar
Citation: Packaging Technology & Science, 19 (1), 2005, 45-54
Abstract: The objective of this research was to determine the relationship between different product types and tag orientations on the readability of RFID tags on shipping containers in a palletload that is driven through a portal type reader. This research finds that the content of packages can dramatically reduce the read rate. Only 25% of the tags on shipping containers containing water-filled bottles could be read. Rice-filled jars had a higher read rate (80.6%). Even empty boxes did not have a 100% read rate. For the variables without appreciable package contents, only 74—79% of loads had all of their tags read. The orientation of the tag does make a difference, especially when coupled with a filled package between it and the reader antennae. Tags facing outwards, towards the reader antennae, had the highest likelihood of a successful read. When tags for the boxes of water-filled bottles were all facing downwards, no tags were read. Supply chain managers need to understand these limitations of the technology and find ways to overcome them before RFID can be successfully implemented in supply chains.
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Customer Behavior in an Online Ordering Application: A Decision Scoring Model
By: Ken Boyer and G. Tomas Hult
Citation: Decision Sciences, 36 (4), 2005, 569-598
Abstract: This research presents the development of behavioral scoring models to predict future customer purchases in an online ordering application. Internet retailing lowers many barriers for customers switching between retailers for repeat purchases; thus, retaining existing customers is a key challenge for achieving profitability. Survey data were collected from 1,089 online customers of two companies. The subjective survey data were then used to predict purchases over the ensuing 12 months based on data from the company databases. The analysis illustrates the general applicability of predictive models of future customer purchases while also demonstrating the need to develop specific models tailored for an individual company’s operating and marketing environment. The models provide insight on how companies can target marketing dollars more effectively and allocate investment across multiple operational areas for maximum return. The research answers a call for rigorous research in the area of predictive marketing, an area in which many companies are excelling but where there is a scarcity of detailed knowledge regarding application of such models.
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Extending the Supply Chain: Integrating Operations and Marketing in the Online Grocery Industry
By: Ken Boyer and Tomas Hult
Citation: Journal of Operations Management, 23 (6), 2005, 642-661
This study reports results from case studies of four Internet-ordering and home-delivery grocers and 2440 of their customers. Each grocer follows a different operations strategy as determined by choice of where to fulfill customer orders (from existing stores or from a dedicated DC) and by choice of delivery method (direct to the customer's home/office or indirect via customer pickup or third-party logistics provider). The survey data from customers are used to assess the degree of integration between marketing and operations and the relationship with customer behavioral intentions. The results indicate that eBusiness-, product-, and service-quality, all have a significant direct effect on customer behavioral intentions to purchase again. There is limited support for technology as a moderating factor. Finally, the relationships between the predictor variables and customer behavioral intentions differ across grocers. This supports the idea that grocers utilizing different operational strategies should focus attention on different facets of their business and provides insight as to where efforts should be directed.
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Internet Ticketing in an Not-for-Profit, Service Organization: Building Customer Loyalty
By: Ken Boyer and John Olson
Citation: International Journal of Operations & Production Management, 25 (1), 2005, 74-92
Purpose – The purpose of this paper is to look at the ways in which the internet has changed the way in which many organizations now do business. The internet has made the transference of information easy but fulfilling online orders has proved to be a challenge.
Design/methodology/approach – This study presents detailed analysis of 238 customers of a world-renowned not-for-profit organization – the Chicago Symphony Orchestra (CSO). Our sample of customers consists of patrons who ordered tickets online at least once during the 2001/2002 concert seasons. Factors influencing the development of an e-loyal customer database were examined.
Findings – The results indicate that customers realize significant benefits from using the internet to purchase concert tickets. Patrons also indicated that they were satisfied with their internet service experience.
Originality/value – The role of the internet within organizations will change dramatically over the next decade. For organizations that are attempting to use the internet as a primary sales medium, they must realize that their success hinges on the development of a sustainable customer base. For established organizations, the integration of the internet into their existing business will be one of the keys to future success.
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Operational, Economic and Mission Elements in Not-for-Profit Organizations: The Case of the Chicago Symphony Orchestra
By: Ken Boyer, John Olson, and Jim Belohlav
Citation: Journal of Operations Management, 23 (2), 2005, 125-142
Abstract: The term not-for-profit often brings to mind the idea of an altruistic organization serving society. The reality is that the not-for-profit is a far more complex organization that is responsible to diverse groups of stakeholders. Unlike for-profit organizations, not-for-profit (NFP) organizations have to focus on dual, and often conflicting, goals relating to fulfilling their overall mission while also generating enough revenue to maintain their operating structures. In order to better understand the nature of the dual orientation of the NFP organization, the behavior of Chicago Symphony Orchestra (CSO) patrons using the CSO website is viewed. Specifically, this study examines data for individuals purchasing CSO concert tickets on-line during an 8-month period in 2000–2001. MANOVA and ANOVA statistical procedures are used to analyze the effects of both the economic and mission related orientations operationalized through the e-service encounter. Further, we view data from the online ticketing function relative to the labor costs of the Chicago Symphony Orchestra.
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Linking publicness to Operations Management practices: A study of quality management practices in hospitals
By: Goldstein, S.M. and Naor, M.
Citation: Journal ofOperationsManagement, Feb2005, Vol. 23 Issue 2, p209-228
Abstract: The goal ofthis studyis toserve as afoundation toestablish alink between the theory oforganizational publicnessand operationsmanagementpractices. Qualitymanagementpracticesprovide the unit ofanalysis for studying this linkage. The theory oforganizational publicnessis used toestablish that organizations can be defined on acontinuum ofpublicnessrather than as purely public or purely private. Particular cultural factors, political influences, and organizational characteristics define this publicness. The studyinvestigates the linkage between four publicnessdimensions (ownership, goal setting, funding, and control) and operations-related qualitypractices(information and analysis. staff focus, and process management) inU.S. hospitals. The results ofregression analysis show that the publicnessdimensions ofownership and control are related tosome qualitymanagementpractices, with control (i.e. public responsibility and compliance) having asignificant effect throughout the studied models. Hospitalgoal setting and funding, two additional publicnessdimensions, are not significantly related toqualitymanagementpractices. The results ofthis studybuild our understanding ofhow operationspracticesare used inpublic organizations and help todefine the extent towhich publicnessmatters.

 

Fit, Flexibility and Performance in Manufacturing: Coping with Dynamic Environments
By: Gopesh Anand and Peter Ward
Citation: Production and Operations Management Journal, 13 (4), 2004, 369-385
Today's dynamic markets are motivating companies to develop greater flexibility. An effective strategy requires that managers discern the specific market challenges faced by their business and choose an appropriate approach to flexibility in response. It is important that managers not blindly invest in flexible technologies as a hedge against an uncertain future: careful analysis is required to achieve fit with the marketplace and improved performance.
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Nu-kote’s Spreadsheet Linear Programming Models for OptimizingTransportation
By: L.J. LeBlanc, James Hill, G.W. Greenwell, and A.O. Czesnat
Citation: Interfaces, 34 (2), 2004, 139-146
Abstract: Nu-kote International manufactures ink-jet, laser, and toner cartridges; ribbons; and thermal fax supplies. We developed spreadsheet linear-programming models for planning shipments of finished goods between vendors, manufacturing plants, warehouses, and customers to minimize overall cost subject to maximum-shipping-distance policies. Nu - kote used versions of these linear programs (LPs) to model supply chains with different warehouse configurations. The LPs have between 5,000 and 9,700 variables and 2,452 constraints. Nu - kote has used these LPs for an inherently nonlinear problem to identify improved shipments that will reduce annual costs by approximately $1 million and customer transit time by two days. It has already saved $425,000 from insight gained from the model.
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Performance Implications of Assembly Work Teams
By: John McCreery, Lee Krajewski, Keong Leong, Peter Ward
Citation: Journal of Operations Management, 22 (4), 2004, 387-412
A model of a manually-paced assembly area can help managers understand how three workforce management policies related to flexibility (the configuration of work teams, the extent of cross training, and the deployment of workers) affect throughput, utilization, and efficiency. The results show that the value of workforce flexibility is contingent upon characteristics of the operating environment (product variety and task complexity); more cross training and more work teams working in parallel are not universally appropriate actions.
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The role of clinical and process quality in achieving patient satisfaction in hospitals
By: Marley, K.A., Collier, D.A., and Goldstein, S.M.
Citation: Decision Sciences, Summer2004, Vol. 35 Issue 3, p349-369
Abstract: Managers constantly struggle with where to allocate their resources and efforts in managing the complex service delivery system called a hospital. In the broadest sense, their decisions and actions focus on two important aspects of health care—clinical or technical medical care that emphasizes ‘what’ the patient receives and process performance that emphasizes ‘how’ health care services are delivered to patients. Here, we investigate the role of leadership, clinical quality, and process quality on patient satisfaction. A causal model is hypothesized and evaluated using structural equation modeling for a sample of 202 U.S. hospitals. Statistical results support the idea that leadership is a good exogenous construct and that clinical and process quality are good intermediate outcomes in determining patient satisfaction. Statistical results also suggest that hospital leadership has more influence on process quality than on clinical quality, which is predominantly the doctors' domain. Other results are discussed, such as that hospital managers must be mindful of the fact that process quality is at least as important as clinical quality in predicting patient satisfaction. The article concludes by proposing areas for future research.

 

Performance effects of physicians’ involvement in hospital strategic decisions
By: Goldstein, S.M. and Ward, P.T.
Citation: Journal of Service Research, May2004, Vol. 6 Issue 4, p361-372.
Abstract: In recent years, many hospitals have moved to a professional management model from one of physician dominance. One result has been that physicians in some hospitals are alienated from the strategic processes of the hospital. Extant literature suggests that both physician involvement in strategic processes and investment in capability-building programs are associated with improved performance. The literature also suggests that there is an interaction between physician involvement and capability-building investments that is positively associated with performance. We explore these notions empirically using data from a sample of hospitals to evaluate the extent to which physician involvement in strategic decision making and investments in operational capabilities are associated with hospital performance. Results indicate that such proactive involvement of physicians in strategic decision making significantly affects hospital performance. In addition, investments in capability building related to employee development also affect hospital performance.

 

 

Employee development: An examination of service strategy in a high contact service environment
By: Goldstein, S.M.
Citation: Production and Operations Management, 2003, 12(2), 186-203.
Abstract: A critical component of service strategy in high-contact environments is service encounter management. Effective service encounters are a result of the quality of employee development, including systems for work and job design, training and development, and attention to employee well being. Results of empirical analysis indicate that service strategies reflecting the dimensions of employee development drive employee outcomes such as productivity and satisfaction. Employee outcomes are significantly associated with customer satisfaction, but only some linkages to financial performance are significant. This study illustrates the importance of employee development in service strategy design for managing service encounters in high contact service environments.

 

A Mapping of Competitive Priorities, Manufacturing Practices, and Operational Performance in Groups of Danish Manufacturing Companies
By: Thomas Christiansen, William Berry, Peter Bruun, Peter Ward
Citation: International Journal of Operations & Production Management, 23 (10), 2003, 1163-1183
Given resource constraints, companies cannot afford improving everything at the same time. Strategic group membership can be a valuable means for understanding the impact of choices companies make regarding which practices to implement. A sample of 63 Danish companies was divided into four distinct manufacturing strategy groups based on their competitive priorities. A key finding is that not all competitive priorities require the same emphasis on JIT, TQM, and TPM in order to achieve operational objectives.
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Revising the Master Production Schedule in Sequence Dependent Processes
By: James Hill, William Berry, David Schilling
Citation: International Journal of Production Research, 41 (9), 2003, 2021-2035
Past MPS research has generally not focused on environments with sequence dependent changeover times, as is common in process industries. This paper presents two heuristics to revise the MPS to improve plant performance in such environments and describes the sensitivity of the performance effects to frequently encountered plant operating conditions.
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Lean Manufacturing: Context, Practice Bundles, and Performance
By: Rachna Shah and Peter Ward
Citation: Journal of Operations Management, 21 (2), 2003, 129-142
Moving beyond past anecdotal success stories, this paper uses extensive survey data from the IndustryWeek Census of Manufacturers to provide convincing statistical evidence of the benefits of lean manufacturing in a broad range of contexts. Factors associated with lean implementation and associated benefits were examined. Plant age and unionization do not seem to be major implementation inhibitors. Implementation of bundles of Just-In-Time, Total Quality Management, Total Productive Maintenance, and worker team practices associated with lean is likely to provide performance advantage, regardless of size, age, or level of unionization. This research, generously supported by the CEMM, won the prestigious Shingo Prize.
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Aligning Supply Chain Management Characteristics and Interorganizational Information System Types: An Exploratory Study
By: Rachna Shah, Susan Meyer Goldstein, Peter Ward
Citation: IEEE Transactions on Engineering Management, 49 (3), 2002, 282-292
This research proposes a supply chain management-interorganizational information system (SCM-IOIS) matrix as a framework to investigate the impact of the alignment of IOIS capabilities with the needs of supply chain members. Although firms that coordinate more with their supply chain partners and/or achieve higher level of IOIS integration generally show improvement for several performance metrics, the benefits are significantly greater for those that show SCM-IOIS alignment.
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The service concept: The missing link in service design research?
By: Goldstein, S.M., Johnston, R., Duffy, J. and Rao, J.
Citation: Journal of Operations Management 20(2), 2002, 121-134.
Abstract: The service concept plays a key role in service design and development. But while the term is used frequently in the service design and new service development literature, surprisingly little has been written about the service concept itself and its important role in service design and development. The service concept defines the “how” and the “what” of service design, and helps mediate between customer needs and an organization’s strategic intent. We define the service concept and describe how it can be used to enhance a variety of service design processes. As illustrations here, we apply the service concept to service design planning and service recovery design processes. Employing the service concept as an important driver of service design decisions raises a number of interesting questions for research which are discussed here.

 

The influence of location, strategy, and operations technology on hospital performance
By: Goldstein, S.M., Ward, P.T., Leong, G.K. and Butler, T.W.
Citation: Journal of Operations Management, Feb2002, Vol. 20 Issue 1, p63-75
Abstract: Hospitals in the US are faced with challenges in how to compete and remain viable in an increasingly competitive environment. Using data from a primary survey of hospitals and from various secondary sources, we investigate the incremental effects on hospital performance of location, strategy, and technology. We find that hospital location is significantly related to performance, but that a hospital's choice of strategy can moderate the effect of location. Additionally, we find hospitals that invest more extensively in clinical technologies tend to be better performers regardless of location. Hospital size, measured as number of beds, captures the effects of location and technology investment in accounting for a major portion of hospital performance. While we cannot argue that larger is always better for hospitals, mergers, partnerships, and other forms of consolidation currently observed in the marketplace indicate that managers in the hospital industry understand the advantage of size

 

 

Empirical support for the Baldrige Award framework in U.S. hospitals
By: Goldstein, S.M. and Schweikhart, S.B.
Citation: Health Care Management Review, Winter2002, Vol. 27 Issue 1, p62,
Abstract: This paper focuses on the Malcolm Baldridge National Quality Award in United States hospitals. Aims to promote quality awareness and practices; Provision of framework for developing and managing quality systems for health care organizations; Impact of the award on the hospitals management

 

An empirical test of the causal relationships in the Baldrige Health Care Pilot Criteria
By: Meyer, S.M. and Collier, D.A.
Citation: Journal of Operations Management 19(4), 2001, 403-425.
Abstract: This research is the first to empirically test the causal relationships in the Malcolm Baldrige National Quality Award (MBNQA) Health Care Pilot Criteria. The Baldrige model of quality management for the health care industry is tested here using data from 220 US hospitals. Results of confirmatory structural equation modeling show that many of the hypothesized causal relationships in the Baldrige model are statistically significant. For example, Leadership (Baldrige Category 1.0) is identified as a driver of all components in the Baldrige System, including Information and Analysis, Strategic Planning, Human Resource Development and Management, and Process Management. This study also clarifies and improves understanding of within-System performance relationships. Baldrige components of Leadership and Information and Analysis are significantly linked with Organizational Performance Results while Human Resource Development and Management and Process Management significantly link with Customer Satisfaction. In addition, a comprehensive “measurement model” grounded in the Baldrige Health Care Criteria for the 28 dimensions of measurement is developed, tested, and found to be valid and reliable. This valid and reliable measurement model allows a fair test of the “structural model”, which tests the relationships among the Baldrige model constructs. Ten major findings and future research ideas are discussed.

 

Master Production Scheduling in Capacitated Sequence Dependent Process Industries
By: James Hill, William Berry, G.K. Leong, and David Schilling
Citation: International Journal of Production Research, 38 (18), 2000, 4743-4761
Traditional approaches to planning and control of manufacturing (MRPII) focus on discrete parts manufacturing industries (e.g. automotive). The chemical industry, however, presents unique challenges. Cross-contamination of production is a key issue among some chemical facilities. A considerable amount of capacity is lost as a result of changeovers which involve performing thorough clean-ups to wash away the impurities which may contaminate the next product to be produced. Therefore, planning for sequence-dependent changeovers becomes crucial and complicates the master production scheduling process. This paper shows how improved master production scheduling performance can be obtained by using a two-level master production schedule (MPS) to focus on key plant processes, and by incorporating a scheduling heuristic which considers sequence-dependent changeovers and capacity constraints. This approach is illustrated using actual operating data from a chemical firm typical of many process industry operations. Simulation experiments are reported that test the performance of the proposed master scheduling method in a single-stage sequence-dependent process. The experimental factors include both the introduction of the two-level MPS with the scheduling heuristic, and the effect of changes in the MPS batch size. The results demonstrate that important simultaneous improvements in process changeover time and delivery performance can be achieved using the proposed MPS scheduling approach against a more traditional (single-level) MPS approach which does not consider sequence-dependent changeovers. Further, we find that delivery performance is relatively insensitive to adjustments in the MPS batch size when using the two-level MPS approach.
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Approaches to Mass Customization: Configurations and Empirical Validation
By: Rebecca Duray, Peter Ward, Glenn Milligan, William Berry
Citation: Journal of Operations Management, 18 (6), 2000, 605-625
Mass customization is a paradox-breaking approach that combines the unique products of craft manufacturing with the cost-efficient manufacturing methods of mass production. This paper classifies mass customizers based on the point of initial customer involvement in the production cycle and the type of modularity employed to achieve customization. Performance implications of the configurations are examined. Those mass customizers that are closest to mass producers in manufacturing approach are most likely to reap the benefits of mass customization.
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Master Production Scheduling in Capacitated Sequence-Dependent Process Industries
By: James Hill, William Berry, Keong Leong, David Schilling
Citation: International Journal of Production Research, 38 (18), 2000, 4743-4761
Past MPS research has generally not focused on environments with sequence dependent changeover times, as is common in process industries. This paper shows how a relatively simple heuristic with two-level master production scheduling can provide improvement in changeover time and shortages compared to single-level scheduling without the heuristic. Furthermore, shortages actually decrease with the heuristic (instead of increase as with single-level scheduling) when smaller lot sizes are used.
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Manufacturing Strategy in Context: Environment, Competitive Strategy and Manufacturing Strategy
By: Peter Ward and Rebecca Duray
Citation: Journal of Operations Management, 18 (2), 2000, 123-138
This paper tests a conceptual model of the relationship between the business environment, organizational competitive strategy, manufacturing strategy, and company performance. A differentiation strategy is more effective than a low price strategy in dynamic environments. The data also showed a strong link between a manufacturing strategy of pursuing quality and performance.
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An empirical comparison of service matrices
By: Collier, D.A. and Meyer, S.M.
Citation: InternationalJournal of Operationsand Production Management,20(6), 2000, 705-729.
Abstract: This research is the first study to evaluate and compare alternative service positioning matrices using rigorous statistical analysis and a common data set based on a variety of service processes. The matrices are evaluated based on five guidelines: clarity of construct definitions, conceptual independence of the two axes of each matrix, clarity in specifying the direction of causation from one axis to the other, axis unidimensionality, and correlation between the two axes of each matrix. These five guidelines provide a more rigorous approach to evaluating current and future positioning matrices, and contribute to the literature by defining more specifically than past research what constitutes a good positioning matrix. The difference between a classification scheme and a positioning matrix are also explained. The results indicate that while there is a statistically significant level of association (correlation) between the axes (Guideline 5) of each of the service matrices studied, meeting the requirements of the other four guidelines is a challenge for some service matrices.

 

 

Manufacturing Flexibility: Methods for Measuring the Impact of Product Variety on Performance in Process Industries
By: William Berry and Martha Cooper
Citation: Journal of Operations Management, 17 (2), 1999, 163-178
Achieving competitive advantage through increased product variety is heavily dependent on the proper alignment of the marketing and manufacturing strategies. This paper describes a framework and methodology for resolving the critical strategic issues of product pricing and process investment required to achieve the necessary manufacturing flexibility in product mix.
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Aligning Marketing and Manufacturing Strategies with the Market
By: William Berry, Terry Hill, Jay Klompmaker
Citation: International Journal of Production Research, 37 (16), 1999, 3599-3618
Frameworks and methodologies are an essential aid for executives when formulating, articulating, debating, and implementing functional strategies such as marketing and manufacturing. The framework and methodology described in this paper provide a way of organizing management thinking about manufacturing strategy and how it relates to a firm's markets and marketing strategy, and a means of articulating the strategies to other business functions. A five step, hard-data-driven process to achieve strategic alignment is illustrated in the context of a business case.
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A service positioning matrix
By: Collier, D.A. and Meyer, S.M.
Citation: (1998). International Journal of Operations & Production Management, Vol. 18, 12, December 10, 1998, p. 1223-1244
Abstract: The service positioning matrix shows how the desired nature of the customer’s service encounter activity sequence translates into a recommended service system design. The matrix helps managers think about marketing and operations linkages, roles of the customer and service-provider in creating and delivering services, facility design and process choice, and the different types of management challenges at each position in the matrix. Concepts such as the service encounter activity sequence and the degree of repeatability in the activity sequence are defined and used in the matrix. Examples are given to illustrate the positioning of service entities within the matrix. An empirical evaluation provides statistical support for the logic of the service positioning matrix. The criteria used in the matrix are meaningful to survey participants. Future research directions and issues are discussed.

 

Unlocking the Potential of Advanced Manufacturing Technologies
By: Kenneth Boyer, Keong Leong, Peter Ward, Lee Krajewski
Citation: Journal of Operations Management, 15, 1997, 331-347
A survey of manufacturers shows that firms that invest in advanced manufacturing technologies (AMTs) and manufacturing infrastructure perform better than firms that invest in only one or the other. Although AMTs such as flexible manufacturing systems, computer aided design, computer aided manufacturing, and robotics offer powerful capabilities, those capabilities can only be fully realized when companies also invest in their infrastructure, such as upgrading the skills of their workforce.
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Customer Driven Manufacturing
By: William Berry, Terry Hill, Jay Klompmaker
Citation: International Journal of Operations & Production Management, 15 (3), 1995, 4-15
To be successful, a company must do the basic tasks well, and nothing is more basic than manufacturing and marketing. The most significant corporate manufacturing decision a firm makes is its investments in manufacturing processes and infrastructure based on the technical and business specifications indicated by the various products produced and markets served. Unfortunately, too often manufacturing's strategic inputs are not well developed, either alone or in line with the marketing strategy. A strategy development framework is presented that is based on integrated functional partnership geared towards meeting customer needs.
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Business Environment, Operations Strategy, and Performance: An Empirical Study on Singapore Manufacturers
By: Peter Ward, Rebecca Duray, Keong Leong, Chee Chuong Sum
Citation: Journal of Operations Management, 13 (2), 1995, 99-115
Successful firms respond to labor shortages through a strategic emphasis on flexibility, whereas low performers do not show any significant strategic response. Furthermore, good performers in dynamic or hostile environments adopt strategies that enable differentiation based on operations capabilities (i.e., quality, delivery performance, and/or flexibility), whereas poor performers simultaneously pursue both differentiation and cost reduction.
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Manufacturing Proactiveness and Performance
By: Peter Ward, Keong Leong, Kenneth Boyer
Citation: Decision Sciences, 25 (3), 1994, 337-358
A survey of manufacturers shows that a firm needs to invest in structural programs (technology) and have either a high level of manufacturing executive involvement in the development of the strategic processes of the business unit or a high degree of investments in infrastructural programs (people) to be more likely than average to achieve success. In other words, technology alone is not enough; companies must vigorously pursue at least one other proactiveness dimension.
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Risk Taking - A series of 4 articles
John F. Dix
Business Development Index, Ltd.

Article #1 Risk Taking in Troubled Economic Times
Article #2 The Risk Management Ethics Link
Article #3 Role of the Board
Article #4 Risk Creep and the Sources of Risk

 

Board Member Attributes - A series of 6 articles
John F. Dix
Business Development Index, Ltd.

Article #1 Independent Enough to Bring Fresh Thinking and New Ideas
Article #2 Able to Constructively Disagree
Article #3 Available Off Line
Article #4 Asks Simple Penetrating Questions
Article #5 Interested in Mentoring Managers
Article #6 Connected to Outside Resources

 

Privately Held Company Boards of Advisors - A series of 10 articles
John F. Dix
Business Development Index, Ltd.

Published in Business First

Article #1 Boards of Advisors Efficient Way To Fill Gaps In Expertise
Article #2 Signs Become Clear When Board of Advisers is Needed
Article #3 Advisory Boards Can Freshen Up the Approach to Business
Article #4 How to Lay the Foundation for Strong Advisory Board
Article #5 How to Reap Valuable Fruit of Advisory Board Expertise
Article #6 Eight Ways to Get Most Out of a Firm's Advisory Board
Article #7 Wring the Most Benefits from Your Advisory Board
Article #8 Board of Advisors Composition and Compensation
Article #9 Questions Board Members Should Ask
Article #10 Information to Share with New Board Members

 

The Process of Strategic Planning - A series of 10 articles

By: John F. Dix
  Business Development Index, Ltd.
  H. Lee "Buck" Mathews
  The Ohio State University
  Columbus, Ohio
  August 2002
  Published in Business First

To view the Strategic Planning Flow Chart, click here.

Article #1 Introduction To Strategic Planning
Article #2 Current Situation Analysis
Article #3 Segmentation Analysis: Matching Market
  Potential and Company Strength
Article #4 SWOT Analysis
Article #5 Core Competency Analysis
Article #6 Key Success Factors
Article #7 Business Unit Strategy
Article #8 The Balanced Scorecard
Article #9 Evaluation
Article #10 Summary and Conclusion

If you would like to view all ten of the above strategic planning articles, click here.