Business Commons^™

Road Rescue Implements A Continuous Process Improvement Framework, John Olson, Paul Savory

John Olson

Continuous improvement programs traditionally focus on making small incremental improvements to a system. Unfortunately, their success can be limited due to the rapid changing environment within which most small companies operate. Improvement efforts should be flexible enough to capitalize on incremental and radical changes to a system. This paper presents a case analysis of how Road Rescue, an ambulance manufacturer, uses a continuous improvement framework to capitalize on both radical and incremental improvement opportunities. Results include a 10% increase in throughput, reduced cycle time of 44%, increased customer satisfaction, and higher quality.

Effect Of Retiring Custom Web Applications On Business And Information Technology Alignment, Shubhashree Thekahally

Shubhashree Thekahally 7340504

Web applications provide the information technology (IT) implementation of business and align IT with business. Retirement of IT applications should ensure stability of business and IT alignment. The current study investigated the alignment gaps created between business and IT resulting from retiring IT software applications. The purpose of this study was to identify IT integration points with business and provide a process-based solution that sustained IT alignment with business after retiring IT applications. The theoretical framework strategic alignment model aided in identifying 3 IT domains as the IT integration points with business: enterprise architecture, configuration management database, and service-level agreement. …

Take Two Tablets And Do Not Call For Judicial Review Until Our Heads Clear: The Supreme Court Prepares To Demolish The 'Wall Of Separation' Between Church And State, Terence Lau, William Wines

Terence Lau

In this article, we examine the issues that bring First Amendment jurisprudence to the grant of certiorari in Pleasant Grove v. Summum, scheduled for oral argument in the Supreme Court of the United States in November. We examine the historical basis for America’s religious heritage, the historical judicial treatment of the religious clauses, and the erosion of the wall of separation between church and state. We examine the Ten Commandments, finding inherent discrimination present in modern-day attempts to advance a particular version of the Ten Commandments as secular. By drawing upon Rousseau’s civic religion, we suggest alternative routes for the …

Attitudes Toward And Behavioral Intentions To Adopt Mobile Marketing: Comparisons Of Gen Y In The United States, France And China, Rebecca Wells, Catherine E. Kleshinski, Terence Lau

Terence Lau

The rapid global diffusion of mobile marketing makes it increasingly important to understand cross-­‐cultural consumer attitudes and behavioral intentions toward mobile marketing as a promotional channel. By building on the previously published research of Altuna and Konuk (2009), this work investigates the attitudes and behavioral intentions toward mobile marketing of Generation Y consumers in the United States, France, and China. Based on this analysis, Chinese Gen Y have the most positive attitude toward mobile marketing, and their overall attitude is significantly more positive than the attitudes of French and American Gen Y groups. While American Gen Y's behavioral intentions are …

National Innovation Systems And Multinational Corporations, Kyle S. Herman

Dr. Kyle S. Herman

Enhancing Manufacturing Planning And Control Systems Through Artificial Intelligence Techniques, Ronald S. Dattero, John J. Kanet, Edna M. White

John J. Kanet

Manufacturing planning and control systems are currently dominated by systems based upon Material Requirements Planning (MRP). MRP systems have a number of fundamental flaws. A potential alternative to MRP systems is suggested after research into the economic batch scheduling problem. Based on the ideas of economic batch scheduling, and enhanced through artificial intelligence techniques, an alternative approach to manufacturing planning and control is developed. A framework for future research on this alternative to MRP is presented.

Production Planning And Control Systems-State Of The Art And New Directions, V. Sridharan, John Kanet

John J. Kanet

This chapter begins with a description of the role of production planning and control (PPC) within the manufacturing function. After discussing the impact of the operating environment on the choice a system for PPC, we describe some recent empirical evidence regarding the use and performance results of various PPC systems. This is followed by a brief overview of the two most widely used systems for production planning and control. We then describe a recent development in the area of short-term detailed scheduling exploiting the latest developments in computing technology. The chapter concludes with a discussion of an emerging paradigm for …

Operations Research For Freight Train Routing And Scheduling, Steven Harrod, Michael Gorman

Michael F. Gorman

This article describes the service design activities that plan and implement the rail freight operating plan. Elements of strategic service design include the setting of train frequency, the routing of cars among trains, and the consolidation of cars, called blocking. At the operational level, trains are dispatched either according to train paths configured in advance, called timetables, or according to priority rules. We describe the North American and European practice along with selected modeling and problem solving methodologies appropriate for each of the operating conditions described.

Operations Research Approaches In Asset Management In Freight Rail, Michael Gorman, Steven Harrod

Michael F. Gorman

This article describes operations research methodologies as they apply to asset management in freight rail. We describe state-of-the-art methods for locomotive, crew, rail-car, line and yard planning and management. We conclude with emerging areas of research in rail.

Capacity Planning With Financial And Operational Hedging In Low‐Cost Countries, Lijian Chen, Shanling Li, Letian Wang

Lance (Lijian) Chen

The authors of this paper outline a capacity planning problem in which a risk-averse firm reserves capacities with potential suppliers that are located in multiple low-cost countries. While demand is uncertain, the firm also faces multi-country foreign currency exposures. This study develops a mean-variance model that maximizes the firm’s optimal utility and derives optimal utility and optimal decisions in capacity and financial hedging size. The authors show that when demand and exchange rate risks are perfectly correlated, a risk- averse firm, by using financial hedging, will achieve the same optimal utility as a risk-neutral firm. In this paper as well, …

A Simulation-Based Approach To Solve A Specific Type Of Chance Constrained Optimization, Lijian Chan

Lance (Lijian) Chen

We solve the chance constrained optimization with convex feasible set through approximating the chance constraint by another convex smooth function. The approximation is based on the numerical properties of the Bernstein polynomial that is capable of effectively controlling the approximation error for both function value and gradient. Thus, we adopt a first-order algorithm to reach a satisfactory solution which is expected to be optimal. When the explicit expression of joint distribution is not available, we then use Monte Carlo approach to numerically evaluate the chance constraint to obtain an optimal solution by probability. Numerical results for known problem instances are …

Re-Solving Stochastic Programming Models For Airline Revenue Management, Lijian Chen, Tito Homem-De-Mello

Lance (Lijian) Chen

We study some mathematical programming formulations for the origin-destination model in airline revenue management. In particular, we focus on the traditional probabilistic model proposed in the literature. The approach we study consists of solving a sequence of two-stage stochastic programs with simple recourse, which can be viewed as an approximation to a multi-stage stochastic programming formulation to the seat allocation problem. Our theoretical results show that the proposed approximation is robust, in the sense that solving more successive two-stage programs can never worsen the expected revenue obtained with the corresponding allocation policy. Although intuitive, such a property is known not …

Ancillary Service Capacity Optimization For Both Electric Power Suppliers And Independent System Operator, Lijian Chen, Dengfeng Sun, Guang Li

Lance (Lijian) Chen

Ancillary Services (AS) in electric power industry are critical to support the transmission of energy from generators to load demands while maintaining reliable operation of transmission systems in accordance with good utility practice. The ancillary services are procured by the independent system operator (ISO) through a process called the market clearing process which can be modeled by the partial equilibrium from the ends of ISO. There are two capacity optimization problems for both Market participants (MP) and Independent System Operator (ISO). For a market participant, the firm needs to determine the capacity allocation plan for various AS to pursue operating …

Capacity-Driven Pricing Mechanism In Special Service Industries, Lijian Chen, Suraj M. Alexander

Lance (Lijian) Chen

We propose a capacity driven pricing mechanism for several service industries in which the customer behavior, the price demand relationship, and the competition are significantly distinct from other industries. According our observation, we found that the price demand relationship in these industries cannot be modeled by fitted curves; the customers would neither plan in advance nor purchase the service strategically; and the competition would be largely local. We analyze both risk neutral and risk aversion pricing models and conclude the proposed capacity driven model would be the optimal solution under mild assumptions. The resulting pricing mechanism has been implemented at …

Cynicism In Negotiation: When Communication Increases Buyers’ Skepticism, Eyal Ert, Stephanie J. Creary, Max H. Bazerman

Stephanie J. Creary

The economic literature on negotiation shows that strategic concerns can be a barrier to agreement, even when the buyer values the good more than the seller. Yet behavioral research demonstrates that human interaction can overcome these strategic concerns through communication. We show that there is also a downside of this human interaction: cynicism. Across two studies we focus on a seller-buyer interaction in which the buyer has uncertain knowledge about the goods for sale, but has a positive expected payoff from saying “yes” to the available transaction. Study 1 shows that most buyers accept offers made by computers, but that …

Integrating Commercial Ambulatory Electronic Health Records With Hospital Systems: An Evolutionary Process., Susan A Sherer, Chad D Meyerhoefer, Michael Sheinberg Md, Donald Levick Md

Donald Levick MD, MBA, CPHIMS

OBJECTIVE: The increase in electronic health record implementation in all treatment venues has led to greater demands for integration within and across practice settings with different work cultures. We study the evolution of coordination processes when integrating ambulatory-specific electronic health records with hospital systems. MATERIALS AND METHODS: Longitudinal qualitative study using semi-structured interviews and archival documentation throughout a 5-year implementation and integration of obstetrical ambulatory and hospital records with a goal of achieving a perinatal continuum of care. RESULTS: As users implement and integrate electronic health records, there is an evolution in their focus from technology acceptance to structural adaptation …

Judging Similarity Among Strings Described By Hierarchical Trees, Lola L. Lopes, Michael D. Johnson

Michael D. Johnson

The paper compares the tree-theoretical model of similarity judgement (in which the similarity between two objects is a function of the distance between them in a conceptual tree) with an averaging model of similarity judgement that is drawn jointly from information integration theory and from current research indicating the prevalence of anchoring and adjustment mechanisms in judgement. Results of an experiment are presented that suggest that even when subjects organize conceptual material as a hierarchical tree, judgments of similarity among the objects are better accounted for by an averaging mechanism than by distances in the tree. These data are discussed …

The Evolution And Future Of National Customer Satisfaction Index Models, Michael D. Johnson, Anders Gustafsson, Tor Wallin Andreassen, Line Lervik, Jaesung Cha

Michael D. Johnson

A number of both national and international customer satisfaction barometers or indices have been introduced in the last decade. For the most part, these satisfaction indices are embedded within a system of cause and effect relationships or satisfaction model. Yet there has been little in the way of model development. Of critical importance to the validity and reliability of such indices is that the models and methods used to measure customer satisfaction and related constructs continue to learn, adapt and improve over time. The primary goal of this research is to propose and test a number of modifications and improvements …

The Effects Of Price Bundling On Consumer Evaluations Of Product Offerings, Michael D. Johnson, Andreas Herrmann, Hans H. Bauer

Michael D. Johnson

The bundling of multiple products or components at a set price has become a popular marketing strategy. Although little is known of how bundled price information should be presented to consumers, mental accounting principles provide guidelines. These principles suggest that more positive evaluations should result from bundling or integrating component prices into a single price and debundling or segregating component discounts into a set of discounts. A study is reported in which consumers were presented an offer for an automobile and then asked to evaluate their satisfaction with the offer, likelihood of recommending, and likelihood of repurchasing the brand. The …

The Effects Of Satisfaction And Loyalty On Profits And Growth: Products Versus Services, Bo Edvardsson, Michael D. Johnson, Anders Gustafsson, Tore Strandvik

Michael D. Johnson

The paper uses data from the Swedish Customer Satisfaction Index together with performance data from competing industries to study the difference in logic in terms of customer satisfaction and loyalty between services and products. We find that for product firms loyalty can have a negative effect on company performance, while for service firms the effect is positive. The implication is that service firms must earn their loyalty but product firms can lower their prices and thus retain their customers.

Growth Through Product-Sharing Services, Michael D. Johnson, Andreas Herrmann, Frank Huber

Michael D. Johnson

The authors argue that product-sharing services, where companies offer customers the use of a physical product on a limited basis at a lower cost, offer an overlooked opportunity for growth. The primary advantage of product-sharing services is that they leverage a firm’s core product development and production capabilities to expand their portfolio of offerings and market segments. A framework is developed for distinguishing likely candidates for product sharing from unlikely candidates based on product, customer, and company-strategy considerations. An empirical study of a new car-sharing service at Daimler-Benz is then used to illustrate the development of such a service, its …

A Psychological Perspective On Cultural Difference: Epistemological Heterogeneity And Individual Heterogeneity Across Cultures, Kamal Fatehi, Uday S. Tate

Uday S. Tate

Most cross-cultural studies of management have been sociological type. Conventional view of cultures and sociological perspective has resulted in the assumption that within each culture members are homogeneous in their psychological make-up, logic, and perspective. Although researchers have reminded us that people vary on pivotal psychological dimensions, both on a between-country and within-country basis, these reminders were not heeded. Maruyama’s theories and research on epistemological heterogeneity, and individual heterogeneity across cultures, or as it is called, mindscape, were the exception. This paper elaborates on epistemological heterogeneity and individual heterogeneity across cultures. It suggests that researchers in international management could use …

The Reality Of Digital Currency As A Financial Medium Of Exchange, Dale H. Shao, Lawrence Shao, Ralph E. Mckinney, Duane C. Rosenlieb

Dale H Shao

This paper presents a discussion of the requirements for the long term acceptance of digital currency as a financial medium of exchange through the examination of fundamental criteria associated with common tender and the examination of selected digital currencies. According to the U.S. Treasury, digital currencies are subject to regulation if that digital currency has a substitutive purpose for facilitating exchanging goods and services (Financial Crimes Enforcement Network, 2013). Although governments can place stipulations on currencies, users of common tender, such as digital currencies, expect at least three basic privileges for a digital currency to evolve from conception to realization. …

The Reality Of Digital Currency As A Financial Medium Of Exchange, Dale H. Shao, Lawrence Shao, Ralph E. Mckinney, Duane C. Rosenlieb

Ralph E. McKinney

This paper presents a discussion of the requirements for the long term acceptance of digital currency as a financial medium of exchange through the examination of fundamental criteria associated with common tender and the examination of selected digital currencies. According to the U.S. Treasury, digital currencies are subject to regulation if that digital currency has a substitutive purpose for facilitating exchanging goods and services (Financial Crimes Enforcement Network, 2013). Although governments can place stipulations on currencies, users of common tender, such as digital currencies, expect at least three basic privileges for a digital currency to evolve from conception to realization. …

Enhanced Expense Practices For Higher Education: Enduring Continuous Reductions In State Appropriation, Ralph E. Mckinney, Lawrence Shao

Ralph E. McKinney

The way forward for higher education to survive and to endure reductions in state appropriations is the enrichment of practices associated with traditional expenses. Because consistent reductions in state appropriations threaten to cause major changes to educational services within Higher Education, this paper advocates enhancement to program management and changes to teaching practices without sacrificing students' expectations. In fact, these practices strengthen learning through practical and team teaching environments while promoting unity of colleges and integration of courses. Module learning and transition programs encourage students to complete degrees faster and step up to the next advance degree. Flexibility can be …

Technology, Customization, And Reliability, Michael D. Johnson, John E. Ettlie

Michael D. Johnson

This research examines the relative importance that customers place on product reliability, or things-gone-wrong, and customization, or things-gone-right, across a range of industrial settings. We integrate an evolutionary theory of technology with a dynamic theory of competition to predict that: (1) when technological intensity is relatively low or high, customers place greater value on customization and (2) when technological intensity is more intermediate, product reliability and customization are more equally important. The predictions are tested and supported using data from the American Customer Satisfaction Index (ACSI) survey.

Capturing Customer Heterogeneity Using A Finite Mixture Pls Approach, Carsten Hahn, Michael D. Johnson, Andreas Herrmann, Frank Huber

Michael D. Johnson

An approach for capturing unobserved customer heterogeneity in structural equation modeling is proposed based on partial least squares. The method uses a modified finite-mixture distribution approach. An empirical analysis using quality, customer satisfaction and loyalty data for convenience stores illustrates the advantages of the new method vis-à-vis a traditional market segmentation scheme based on well known grouping variables. The results confirm the assumption of heterogeneity in the individuals’ perception of the antecedents and consequences of satisfaction and their relationships. The results also illustrate how the finite-mixture approach complements and provides insights over and above a traditional segmentation scheme.

Order Effects In Customer Satisfaction Modelling, Seigyoung Auh, Linda Court Salisbury, Michael D. Johnson

Michael D. Johnson

This research examines the effects of question order on the output of a customer satisfaction model. Theory suggests that locating product attribute evaluations prior to overall evaluations of satisfaction and loyalty should increase the impact of performance drivers in the model, explain more variation in the overall evaluations, and make positive satisfaction and loyalty evaluations more extreme. Our results show that, although customers′ overall evaluations are more extreme and better explained when provided after attribute evaluations, the impact of satisfaction drivers is relatively unaffected. Consistent with expectations, question order does affect the explained variation in satisfaction and the levels of …

The Impact Of Quality Practices On Customer Satisfaction And Business Results: Product Versus Service Organizations, Lars Nilsson, Michael D. Johnson, Anders Gustafsson

Michael D. Johnson

Research on the differences in customer satisfaction between product and service organizations has focused on an output perspective, or how customers evaluate performance. This study takes this research inside organizations to analyze and investigate how key internal quality practices of product versus service organizations (employee management, process orientation, and customer orientation) influence customer satisfaction and business results. Using a national quality survey from 482 companies in Sweden, our analysis shows that for product organizations, internal quality practices influence customer satisfaction and business results primarily through an organization's customer orientation. For service organizations, both customer and process orientation impact customers directly, …

Maximum Versus Meaningful Discrimination In Scale Response: Implications For Validity Of Measurement Of Consumer Perceptions About Products, Madhubalan Viswanathan, Seymour Sudman, Michael D. Johnson

Michael D. Johnson

This paper argues for the use of the number of response categories that are meaningful to respondents as a criterion in designing attribute rating scales in marketing in contrast to a focus in past research on using scales to maximize the discrimination elicited from respondents. Whereas scales eliciting a maximum level of discrimination may be more reliable than scales eliciting a meaningful level of discrimination, the latter are argued to be more valid in measuring sameness and difference between brands that are meaningful to respondents. Specifically, a distinction is drawn in this paper between the maximum number of categories that …