Utilizing analytic modelling process in industrial retail context

Nykypäivän monimutkaisessa ja epävakaassa liiketoimintaympäristössä yritykset, jotka kykenevät muuttamaan tuottamansa operatiivisen datan tietovarastoiksi, voivat saavuttaa merkittävää kilpailuetua. Ennustavan analytiikan hyödyntäminen tulevien trendien ennakointiin mahdollistaa yritysten tunnistavan avaintekijöitä, joiden avulla he pystyvät erottumaan kilpailijoistaan. Ennustavan analytiikan hyödyntäminen osana päätöksentekoprosessia mahdollistaa ketterämmän, reaaliaikaisen päätöksenteon. Tämän diplomityön tarkoituksena on koota teoreettinen viitekehys analytiikan mallintamisesta liike-elämän loppukäyttäjän näkökulmasta ja hyödyntää tätä mallinnusprosessia diplomityön tapaustutkimuksen yritykseen. Teoreettista mallia hyödynnettiin asiakkuuksien mallintamisessa sekä tunnistamalla ennakoivia tekijöitä myynnin ennustamiseen. Työ suoritettiin suomalaiseen teollisten suodattimien tukkukauppaan, jolla on liiketoimintaa Suomessa, Venäjällä ja Balteissa. Tämä tutkimus on määrällinen tapaustutkimus, jossa tärkeimpänä tiedonkeruumenetelmänä käytettiin tapausyrityksen transaktiodataa. Data työhön saatiin yrityksen toiminnanohjausjärjestelmästä.

Scheduling forest road maintenance using the analytic hierarchy process and heuristics

Abstract

Are Evaluation of ICTs Investment Using Decision Support Systems:Case Applications from Distributor's and End User's Perspective Group Decision

The evaluation of investments in advanced technology is one of the most important decision making tasks. The importance is even more pronounced considering the huge budget concerning the strategic, economic and analytic justification in order to shorten design and development time. Choosing the most appropriate technology requires an accurate and reliable system that can lead the decision makers to obtain such a complicated task. Currently, several Information and Communication Technologies (ICTs) manufacturers that design global products are seeking local firms to act as their sales and services representatives (called distributors) to the end user. At the same time, the end user or customer is also searching for the best possible deal for their investment in ICT's projects. Therefore, the objective of this research is to present a holistic decision support system to assist the decision maker in Small and Medium Enterprises (SMEs) - working either as individual decision makers or in a group - in the evaluation of the investment to become an ICT's distributor or an ICT's end user. The model is composed of the Delphi/MAH (Maximising Agreement Heuristic) Analysis, a well-known quantitative method in Group Support System (GSS), which is applied to gather the average ranking data from amongst Decision Makers (DMs). After that the Analytic Network Process (ANP) analysis is brought in to analyse holistically: it performs quantitative and qualitative analysis simultaneously. The illustrative data are obtained from industrial entrepreneurs by using the Group Support System (GSS) laboratory facilities at Lappeenranta University of Technology, Finland and in Thailand. The result of the research, which is currently implemented in Thailand, can provide benefits to the industry in the evaluation of becoming an ICT's distributor or an ICT's end user, particularly in the assessment of the Enterprise Resource Planning (ERP) programme. After the model is put to test with an in-depth collaboration with industrial entrepreneurs in Finland and Thailand, the sensitivity analysis is also performed to validate the robustness of the model. The contribution of this research is in developing a new approach and the Delphi/MAH software to obtain an analysis of the value of becoming an ERP distributor or end user that is flexible and applicable to entrepreneurs, who are looking for the most appropriate investment to become an ERP distributor or end user. The main advantage of this research over others is that the model can deliver the value of becoming an ERP distributor or end user in a single number which makes it easier for DMs to choose the most appropriate ERP vendor. The associated advantage is that the model can include qualitative data as well as quantitative data, as the results from using quantitative data alone can be misleading and inadequate. There is a need to utilise quantitative and qualitative analysis together, as can be seen from the case studies.

An analytic approach to distribution logistics strategic management

Logistics management is increasingly being recognised by many companies to be of critical concern. The logistics function includes directly or indirectly many of the new areas for achieving or maintaining competitive advantage that companies have been forced to develop due to increasing competitive pressures. The key to achieving a competitive advantage is to manage the logistics function strategically which involves determining the most cost effective method of providing the necessary customer service levels from the many combinations of operating procedures in the areas of transportation, warehousing, order processing and information systems, production, and inventory management. In this thesis, a comprehensive distribution logistics strategic management process is formed by integrating the periodic strategic planning process with a continuous strategic issues management process. Strategic planning is used for defining the basic objectives for a company and assuring co operation and synergy between the different functions of a company while strategic issues management is used on a continuous basis in order to deal with environmental and internal turbulence. The strategic planning subprocess consists of the following main phases: (1) situational analyses, (2) defining the vision and strategic goals for the logistics function, (3) determining objectives and strategies, (4) drawing up tactical action plans, and (5) evaluating the implementation of the plans and making the needed adjustments. The aim of the strategic issues management subprocess is to continuously scan the environment and the organisation for early identification of the issues having a significant impact on the logistics function using the following steps: (1) the identification of trends, (2) assessing the impact and urgency of the identified trends, (3) assigning priorities to the issues, and (4) planning responses to the, issues. The Analytic Hierarchy Process (AHP) is a systematic procedure for structuring any problem. AHP is based on the following three principles: decomposition, comparative judgements, and synthesis of priorities. AHP starts by decomposing a complex, multicriteria problem into a hierarchy where each level consists of a few manageable elements which are then decomposed into another set of elements. The second step is to use a measurement methodology to establish priorities among the elements within each level of the hierarchy. The third step in using AHP is to synthesise the priorities of the elements to establish the overall priorities for the decision alternatives. In this thesis, decision support systems are developed for different areas of distribution logistics strategic management by applying the Analytic Hierarchy Process. The areas covered are: (1) logistics strategic issues management, (2) planning of logistic structure, (3) warehouse site selection, (4) inventory forecasting, (5) defining logistic action and development plans, (6) choosing a distribution logistics strategy, (7) analysing and selecting transport service providers, (8) defining the logistic vision and strategic goals, (9) benchmarking logistic performance, and (10) logistic service management. The thesis demonstrates the potential of AHP as a systematic and analytic approach to distribution logistics strategic management.

Transitoreitin valintaan vaikuttavat tekijät autotoimialalla: AHP:n soveltaminen

Tämän työn tavoitteena on selvittää transitoreitin valintaan vaikuttavat tekijät sekä Suomen reitin kilpailutekijät verrattuna Baltian maiden, Saksan-Puolan ja Venäjän omiensatamien reitteihin. Lisäksi tavoitteena on testata analyyttista hierarkiaprosessia (AHP) transitoreitin valintaan. Työssä hyödynnetään Suomessa, Venäjällä ja Baltian maissa logistiikkayritysten, ministeriöiden ja viranomaisten kanssa tehtyjä asiantuntijahaastatteluja. Lisäksi suurimmille autotoimialan yrityksille toteutetaan kysely transitoreitin valintaan vaikuttavista tekijöistä. Työssä muodostetaan hierarkia reitin valintaan vaikuttavista tekijöistä. Lisäksi lasketaan analyyttisen hierarkiaprosessin mukaiset painotukset reitin valintaan vaikuttaville tekijöille ja eri reittien kilpailukykyerään autotoimialan vastaajan tapauksessa.

TRAKET - Transitoketjujen kilpailukyky

Tämä tutkimus on osa TRAKET-hanketta, jossa keskitytään Luoteis-Venäjälle vievien transitoreittien kilpailukyvyn selvittämiseen. Tässä tutkimusraportissa käsitellään transitoliikenteen reittien valintaan liittyviä päätöksentekokriteereitä ja verrataan niitä keskenään. Tutkimuksessa selvitetään transitoreitin valintaan vaikuttavat tekijät auto-, arvoelektroniikka- ja kosmetiikkatoimialoilla. Raportissa analysoidaan Suomen transitoreitin kilpailutekijät ja verrataan niitä vaihtoehtoisiin Baltian maiden, Saksan¿Puolan ja Venäjän omien satamien reitteihin.

Project Success through Effective Decisions: Case Studies on Project Goal Setting, Success Evaluation and Managerial Decision Making

The objective of the thesis is to structure and model the factors that contribute to and can be used in evaluating project success. The purpose of this thesis is to enhance the understanding of three research topics. The goal setting process, success evaluation and decision-making process are studied in the context of a project, business unitand its business environment. To achieve the objective three research questionsare posed. These are 1) how to set measurable project goals, 2) how to evaluateproject success and 3) how to affect project success with managerial decisions.The main theoretical contribution comes from deriving a synthesis of these research topics which have mostly been discussed apart from each other in prior research. The research strategy of the study has features from at least the constructive, nomothetical, and decision-oriented research approaches. This strategy guides the theoretical and empirical part of the study. Relevant concepts and a framework are composed on the basis of the prior research contributions within the problem area. A literature review is used to derive constructs of factors withinthe framework. They are related to project goal setting, success evaluation, and decision making. On the basis of this, the case study method is applied to complement the framework. The empirical data includes one product development program, three construction projects, as well as one organization development, hardware/software, and marketing project in their contexts. In two of the case studiesthe analytic hierarchy process is used to formulate a hierarchical model that returns a numerical evaluation of the degree of project success. It has its origin in the solution idea which in turn has its foundation in the notion of projectsuccess. The achieved results are condensed in the form of a process model thatintegrates project goal setting, success evaluation and decision making. The process of project goal setting is analysed as a part of an open system that includes a project, the business unit and its competitive environment. Four main constructs of factors are suggested. First, the project characteristics and requirements are clarified. The second and the third construct comprise the components of client/market segment attractiveness and sources of competitive advantage. Together they determine the competitive position of a business unit. Fourth, the relevant goals and the situation of a business unit are clarified to stress their contribution to the project goals. Empirical evidence is gained on the exploitation of increased knowledge and on the reaction to changes in the business environment during a project to ensure project success. The relevance of a successful project to a company or a business unit tends to increase the higher the reference level of project goals is set. However, normal performance or sometimes performance below this normal level is intentionally accepted. Success measures make project success quantifiable. There are result-oriented, process-oriented and resource-oriented success measures. The study also links result measurements to enablers that portray the key processes. The success measures can be classified into success domains determining the areas on which success is assessed. Empiricalevidence is gained on six success domains: strategy, project implementation, product, stakeholder relationships, learning situation and company functions. However, some project goals, like safety, can be assessed using success measures that belong to two success domains. For example a safety index is used for assessing occupational safety during a project, which is related to project implementation. Product safety requirements, in turn, are connected to the product characteristics and thus to the product-related success domain. Strategic success measures can be used to weave the project phases together. Empirical evidence on their static nature is gained. In order-oriented projects the project phases are oftencontractually divided into different suppliers or contractors. A project from the supplier's perspective can represent only a part of the ¿whole project¿ viewed from the client's perspective. Therefore static success measures are mostly used within the contractually agreed project scope and duration. Proof is also acquired on the dynamic use of operational success measures. They help to focus on the key issues during each project phase. Furthermore, it is shown that the original success domains and success measures, their weights and target values can change dynamically. New success measures can replace the old ones to correspond better with the emphasis of the particular project phase. This adjustment concentrates on the key decision milestones. As a conclusion, the study suggests a combination of static and dynamic success measures. Their linkage to an incentive system can make the project management proactive, enable fast feedback and enhancethe motivation of the personnel. It is argued that the sequence of effective decisions is closely linked to the dynamic control of project success. According to the used definition, effective decisions aim at adequate decision quality and decision implementation. The findings support that project managers construct and use a chain of key decision milestones to evaluate and affect success during aproject. These milestones can be seen as a part of the business processes. Different managers prioritise the key decision milestones to a varying degree. Divergent managerial perspectives, power, responsibilities and involvement during a project offer some explanation for this. Finally, the study introduces the use ofHard Gate and Soft Gate decision milestones. The managers may use the former milestones to provide decision support on result measurements and ad hoc critical conditions. In the latter milestones they may make intermediate success evaluation also on the basis of other types of success measures, like process and resource measures.

Tehdasalueiden liikenneturvallisuutta kehittävä malli

Työn tavoitteena oli antaa tietoa tehdasalueiden turvallisuuteen vaikuttavista tekijöistä ja luoda malli tehdasalueen liikenteen turvallisuuden parantamiseen päätöksenteon tukivälineitä apuna käyttäen. Työ sai alkunsa todellisen turvallisuutta parantavan investoinnin analysointi-tarpeesta. Aluksi työssä perehdytään yleisesti tehdasalueiden turvallisuuteen tarkastelemalla työturvallisuuden, riskienhallinnan ja turvallisuusjohtamisen asemaa, mittaamista ja taloudellisia vaikutuksia yrityksen toiminnalle. Yleiskatsaus tehdasalueiden turvallisuuteen antaa kuvan, millaiseen toimintaympäristöön turvallisuutta parantavaa mallia ollaan kehittämässä. Malli koostuu viidestä vaiheesta, joita voidaan käyttää kokonaisuutena tai toisistaan erillään. Ensin selvitään tutkittavan alueen kulkuväylät ja liikenne sekä mallinnetaan se. Tämän jälkeen kartoitetaan ongelmakohdat ja etsitään sopivia vaihtoehtoja niiden turvallisuuden parantamiseksi. Vaihtoehtoja analysoidaan SWOT-menetelmän avulla. Turvallisuutta parantavien investointien arvioimiseen esitetään muutamia mittareita, joita voidaan käyttää hankintojen arvioimiseen. Viimeisessä vaiheessa tutustutaan päätöksenteon tukisysteemeihin ja esitetään tietokoneavusteinen päätöksentekomenetelmä AHP. Käytännön soveltaminen on esitetty esimerkein mallin eri vaiheiden yhteydessä.Malli on tarkoitettu suunnittelijoiden, johdon ja työsuojelun työkaluksi, jonka avulla voidaan parantaa tehdasympäristön liikenteen tehokkuutta ja turvallisuutta sekä tutustuttaa käyttäjä päätöksentekomenetelmiin.

Priorization of Customer Needs for Paperboard Trays

The objectives of the study were to introduce current issues of chilled and frozen food packaging, priorize certain customer needs and review brand owners’ opinions and ways of actions. Packaging industry and packaged food markets were reviewed. Interviews of food industry brand owners are used as data sources. Analytic hierarchy process was used to prioritize the customer needs. Food packaging, special features of ready meals, chilled and frozen food packaging, packaging industry and packaged food markets in Europe are approached using literature and market reviews and forecasts. In empirical part the customer needs of paperboard trays are prioritized. The most important features for brand owners are related in product safety and environmental issues. Paperboard trays have benefits compared to its competing packaging solutions. Paperboard is recyclable, from renewable source and it has good printability. Emerging issues of packaging technology are biodegradable package, elderly friendly features such as easiness of opening and re-closing possibility, brand protection and tamper evident solutions.

Asiakasarvoa korostavan liikkeenjohdon konsulttiyrityksen kasvumahdollisuudet

Tämän diplomityön tavoitteena on selvittää asiakasarvoa luovat kasvumahdollisuudet eräälle suomalaiselle liikkeenjohdon konsulttiyritykselle. Yrityksen kasvun tulee tapahtua pitkällä aikavälillä kannattavasti ja tukea sen toimintaa sekä liiketoiminnallisia tavoitteita. Työn teoreettiset aihealueet käsittelevät liikkeenjohdon konsultoinnin toimialaa, arvon luomista ja menestymisen edellytyksiä, asiakaspohjaa ja yhteistyömahdollisuuksia sekä kasvun johtamista. Työn empiirisessä osassa näitä aihealueita tutkittiin yrityksestä saatavien havaintojen, asiakaskyselyn sekä osakashaastattelujen avulla. Asiakasarvoa luovien kasvuvaihtoehtojen määrittämisessä käytettiin apuna analyyttistä hierarkiaprosessia. Tutkimuksen keskeisimmät havainnot olivat, että konsultointipalveluiden asiakasarvoa eniten luovat tekijät tärkeysjärjestyksessä ovat lopputuloksen laatu, ihmisten sitouttaminen kehitykseen, toimialaosaaminen, asenne, uudet näkökulmat ja osaaminen sekä hinta. Kohdeyritykselle tutkittiin viittä kasvuvaihtoehtoa ja niiden asiakasarvon tuottamiskykyä. Suositeltavat kasvuvaihtoehdot kohdeyritykselle tärkeysjärjestyksessä ovat asiakaspohjan säilyttäminen, uusien asiakkaiden hankkiminen sekä verkostojen ja allianssien hyödyntäminen.

High-tech – pk-yrityksien innovointia tukevat menetelmät

Tutkielman tavoitteena oli kartoittaa high-tech – pk-yrityksen innovointia tukevia menetelmiä. Yrityksen kykyyn tuottaa innovaatioita vaikuttaa yrityksen käyttämä prosessi. Johtajuudella ja verkostoitumisella voidaan edesauttaa innovaatioiden lopputulosta. Tutkielma rajattiin koskemaan innovaatioprosessia, johtajuutta ja innovaatioverkostoa. Tutkielmassa käytettiin lähteenä aiheeseen liittyvää kirjallisuutta sekä tutkimuksia. Työn tulokseksi saatiin näkemys innovaatioiden tukemisesta high-tech – pk-yrityksissä ja se näyttäisi käytetyn aineiston valossa painottuvan johtamiseen ja innovaatioverkostojen hyödyntämiseen. Käsiteltyjen tutkimusten ja kirjallisuuden mukaan johtamisen ja innovaatioverkoston hyödyntämisen avulla pystytään tukemaan innovaatioprosessia ja siten saamaan onnistunut lopputulos.

Defining the location factors of new manufacturing site in chemical industry

The objective of this thesis is to examine the factors that have an impact on the location decision of new manufacturing site and to create the relative order of importance of these factors by analytic hierarchy process (AHP). The decision making process especially related to the location selection and the measurement of the location factors are also examined. In theoretical part the character of decision making process and the relevant methods are introduced. Based on the previous studies of other researchers, the location factors are examined and the main research method, analytic hierarchy process, is also introduced. The empirical part of the study mainly follows the phases of decision making process and is emphasized on the main stages of analytic hierarchy process; building the hierarchy, defining the priorities and analyzing the results. The hierarchy is constructed from seven main criteria which all have several sub criteria. The evaluation of the hierarchy is implemented at the group decision making –laboratory and there can be seen significant differences between the importance of criteria. The final stage in the study is to create the appropriate measurement scales to the chosen criteria.

Päätöksenteon tukeminen kaivosalan yrityksen toiminnanohjausjärjestelmäratkaisun valinnassa

Diplomityön tavoitteena oli tutkia kohdeyrityksen toiminnanohjaukseen sovellettujen tietojärjestelmien nykytilaa ja pyrkiä tunnistamaan siinä vaikuttavia, kehittämistä vaativia kohteita. Nykytilan kartoituksen perusteella työssä oli määrä laatia vertailu liiketoiminnan ohjaamiseen soveltuvien vaihtoehtoisten järjestelmäratkaisuiden välillä. Perusteellisen selvitystyön ja vaihtoehtojen vertailun avulla pyrittiin tuottamaan päätöksentekoa helpottavaa materiaalia kohdeyrityksen toiminnanohjausjärjestelmäratkaisun valinnan tueksi. Keskeisimpinä menetelminä tutkimuksessa hyödynnettiin asiakaskeskeistä toiminnanohjausjärjestelmän käyttöönottomenetelmää C-CEI:tä sekä analyyttistä hierarkiaprosessia AHP:tä. Tutkimuksen perusteella havaittiin, että onnistunut tietojärjestelmäratkaisun valinta edellyttää perusteellista liiketoiminnan nykytilan selvitystä. Yritysten on myös tärkeää tiedostaa, että tällaisiin monikriteerisiin ja hankaliin päätöksentekotilanteisiin on olemassa useita erilaisia päätöksenteon tukimenetelmiä, joiden avulla päätöksenteon ongelmaa kyetään selkeyttämään ja siten helpottamaan ratkaisun löytämistä.

Modulointia ohjaavien tekijöiden valinta asiakkaiden, tuotekehityksen ja valmistuksen vaatimusten perusteella

Modular drivers cover the entire product life cycle and when the most important modular drivers are known, it is possible to focus on the most essential areas in modularization. Modular drivers are helpful while planning modularization, selecting modules to manufacture and evaluating the success of the modularization. When the modules are formed based on the modular drivers it is also possible to develop production processes according to the requirements of a certain module. The objective of the Master’s Thesis was to organize the modular drivers based on the weightings in order to make the modularization process easier. The phases to find the most important module drivers were formed based on the existing literature and background material from the company. During the Master’s Thesis project the weights of the modular drivers were determined according to the requirements of customers, product development and manufacturing. The requirements were established by a questionnaire and the weights for the requirements were selected in an interview using the Analytic Hierarchy Process. The modular drivers were compared pairwise by the view point of the requirements of certain group. When the results of the three groups were integrated, the weights of the modular drivers were found and it was possible to select the most important drivers.

IT Investment Portfolio Management Over Joint Ventures: Case Study in a Multinational Oil & Gas Company

With information technology (IT) playing an increasing important role in driving the business, the value of IT investment is often challenged because not all of those investment decisions are made in a reasonable way or aligned with business strategies. IT investment portfolio management (PfM) is an effective way to prioritize and select the right IT projects to invest in, by taking all the project proposals into consideration as a whole, based on their business value, risks, costs, and interrelationships. There are different decision models to prioritise projects, and the Analytic Hierarchy Process (AHP) is one of the most commonly-used methods and is discussed in this master thesis. At the same time, there are IT projects on different levels for a multinational company, from global to local. For instance, many of them are probably proposed by joint ventures on local level. In the oil & gas industry, joint ventures are often formed especially in the area of the upstream (exploration & production). How to involve those projects into the IT investment PfM approach of the parent company is a challenge, because the parent company cannot make the decisions on its own. It needs to prioritize all projects in an adequate way, communicate with JVs and influence them. Also, different control levels on JVs need to be considered. This paper hence attempts to introduce a tailored approach of IT investment PfM for a multinational oil & gas company to address the issues around JVs.