Improving demand forecasting practices in the industrial context

Demand forecasting is one of the fundamental managerial tasks. Most companies do not know their future demands, so they have to make plans based on demand forecasts. The literature offers many methods and approaches for producing forecasts. When selecting the forecasting approach, companies need to estimate the benefits provided by particular methods, as well as the resources that applying the methods call for. Former literature points out that even though many forecasting methods are available, selecting a suitable approach and implementing and managing it is a complex cross-functional matter. However, research that focuses on the managerial side of forecasting is relatively rare. This thesis explores the managerial problems that are involved when demand forecasting methods are applied in a context where a company produces products for other manufacturing companies. Industrial companies have some characteristics that differ from consumer companies, e.g. typically a lower number of customers and closer relationships with customers than in consumer companies. The research questions of this thesis are: 1. What kind of challenges are there in organizing an adequate forecasting process in the industrial context? 2. What kind of tools of analysis can be utilized to support the improvement of the forecasting process? The main methodological approach in this study is design science, where the main objective is to develop tentative solutions to real-life problems. The research data has been collected from two organizations. Managerial problems in organizing demand forecasting can be found in four interlinked areas: 1. defining the operational environment for forecasting, 2. defining the forecasting methods, 3. defining the organizational responsibilities, and 4. defining the forecasting performance measurement process. In all these areas, examples of managerial problems are described, and approaches for mitigating these problems are outlined.

Segmentation of Industrial Customers – Case: Finnish Mechanical Engineering Companies

Segmentointi on perinteisesti ollut erityisesti kuluttajamarkkinoinnin työkalu, mutta siirtymä tuotteista palveluihin on lisännyt segmentointitarvetta myös teollisilla markkinoilla. Tämän tutkimuksen tavoite on löytää selkeästi toisistaan erottuvia asiakasryhmiä suomalaisen liikkeenjohdon konsultointiyritys Synocus Groupin tarjoaman case-materiaalin pohjalta. K-means-klusteroinnin avulla löydetään kolme potentiaalista markkinasegmenttiä perustuen siihen, mitkä tarjoamaelementit 105 valikoitua suomalaisen kone- ja metallituoteteollisuuden asiakasta ovat maininneet tärkeimmiksi. Ensimmäinen klusteri on hintatietoiset asiakkaat, jotka laskevat yksikkökohtaisia hintoja. Toinen klusteri koostuu huolto-orientoituneista asiakkaista, jotka laskevat tuntikustannuksia ja maksimoivat konekannan käyttötunteja. Tälle kohderyhmälle kannattaisi ehkä markkinoida teknisiä palveluja ja huoltosopimuksia. Kolmas klusteri on tuottavuussuuntautuneet asiakkaat, jotka ovat kiinnostuneita suorituskyvyn kehittämisestä ja laskevat tonnikohtaisia kustannuksia. He tavoittelevat alempia kokonaiskustannuksia lisääntyneen suorituskyvyn, pidemmän käyttöiän ja alempien huoltokustannusten kautta.

Use Of Systems Approach with Total Quality Management in Industrial Organizations

The objective of the work has been to study why systems thinking should be used in combination with TQM, what are the main benefits of the integration and how it could best be done. The work analyzes the development of systems thinking and TQM with time and the main differences between them. The work defines prerequisites for adopting a systems approach and the organizational factors which embody the development of an efficient learning organization. The work proposes a model based on combination of an interactive management model and redesign to be used for application of systems approach with TQM in practice. The results of the work indicate that there are clear differences between systems thinking and TQM which justify their combination. Systems approach provides an additional complementary perspective to quality management. TQM is focused on optimizing operations at the operational level while interactive management and redesign of organization are focused on optimization operations at the conceptual level providing a holistic system for value generation. The empirical study demonstrates the applicability of the proposed model in one case study company but its application is tenable and possible also beyond this particular company. System dynamic modeling and other systems based techniques like cognitive mapping are useful methods for increasing understanding and learning about the behavior of systems. The empirical study emphasizes the importance of using a proper early warning system.

Developing the service offering of an industrial company

The purpose of this thesis was to determine, what kind of service offering the case company should provide to its customers in the Australian market. For this, a model for analysing the competitive environment was developed. In the model, three players were considered: customers, competitors and the case company. Benchmarking was used in identifying competitors’ offerings currently available in the market. Experts inside the case company were consulted for determining the customer need. The competitors’ offerings were analysed on the basis of Pekkarinen et al.’s (2009) framework, dividing the offerings to services supporting the supplier’s product (SSP), supporting the client (SSC), supporting the client’s network (SSN), supporting mutual actions (SSM) and benefit and risk sharing elements. After this, they were compared to the competitive environment in order to identify areas where the case company can differentiate itself from its competitors in the Australian market. On the basis of the company’s key success factors, and the Finnish service concept currently in use, some additional offerings were suggested for the case company in order to further outperform its competitors in the market. Finally, on the basis of the suggested offerings and competitors’ offerings, a service concept was suggested for the case company to introduce in the Australian market.

Determinants of cash holdings in Finnish industrial sector: measuring the impact of financial crisis 2007- 2010

This thesis studies cash and short term investments to net assets ratio of Finnish industrial companies during financial crisis, and how different firm specific and macro economical variables affect cash and short term investments. The data consists of quarter level interim reports. Regression analysis was used to find out the effects of different variables. Regression models were formed based on previous studies on cash holdings. It was found that firms studied held more cash during financial crisis than before it. Cash and short-term investments acted as substitute of net working capital. Leverage had a positive and significant relationship to cash and short term investment ratio. It was also found out that firms have a target cash and short term investments ratio.

Value co-creation in industrial buyer-seller partnerships - creating and exploiting interdependencies : an empirical case study

In summary the main findings of the study are that there seems to be is no universal definition of value in the context of industrial relationships, but a notion that it is context-, time-, and actor dependent. Value co-creation is a suitable concept in the context of buyerseller relationships. The evolution of a relationship from a transactional to a partnership is long and eventful - a process where the outcome is impossible to estimate in advance. The process is filled with differenttypes of events and also conflicts, which as a matter of fact can be seen as constructive forces in relationship development. The perceived value of a relationship is an antecedent to pursuing a high-involvement strategy; once a partnership exists, the value co-creation potential is realizable through exploiting interdependencies. Those interdependencies are the trigger for value co-creation potential. The value cocreation potential is realized though different processes of value co-creation either to achieve efficiency in exchange or effective use of resources. The logic of buyer-seller partnerships is to create and exploit interdependencies in order to create both efficiency and effective use of resources. (Summary of main findings p. 176)

Generic and professional caring in a Chinese setting: an ethnopraphic study

The objective of the present study is to describe the cultural care practices, meanings, values and beliefs which form the basis of caring in a Chinese context. The research has its starting point in a caring science perspective and a qualitative research approach with interpretative ethnography as methodological guideline. The theoretical perspective is formed by elements of the theory of caritative caring, developed by Eriksson, and the theory of Culture Care Diversity and Universality, developed by Leininger. Previous research of suffering, culture and caring is described and also a presentation of actual transcultural nursing research as well as a presentation of the social structure dimensions of Chinese culture is included in the theoretical background. The empirical part includes patients and relatives, nurses and Hu Gongs as informants. The data collected are analysed based on Geertz’s idea of forming “thick descriptions” through examining the “what, how and why” of people’s actions. The findings show that the family has a prominent position in Chinese caring practices. The patient plays an unobtrusive role and a mutual dependence between the patient and the family members is evident. The professional nursing care is an extended act which includes the family in the caring relationship. The care practices of the Chinese nurse are characterized by great professional nursing skills. Suffering is described by the informants as being caused by disease, pain and social circumstances. “Social suffering” is described as worse than physical or mental suffering. Culturally competent and congruent care is a prerequisite for avoiding cultural pain, imposition and blindness when caring for the suffering human being. The findings of the present study necessitate a broadening in caring theory to include the family in the caring relationship. A further conclusion is that a broadening in our perception and understanding of culture would promote the delivery of culturally competent and congruent care. Suffering need to be seen as enclosed in cultural patterns of how it is expressed, interpreted, understood and relieved. Care and caring need to be seen as embedded in culture and the care practices values and beliefs have to be congruent with the cultural patterns where the care is provided.

Usability of laser–arc hybrid welding processes in industrial applications

Metal industries producing thick sections have shown increasing interest in the laser–arc hybrid welding process because of its clear advantages compared with the individual processes of autogenous laser welding and arc welding. One major benefit of laser–arc hybrid welding is that joints with larger gaps can be welded with acceptable quality compared to autogenous laser welding. The laser-arc hybrid welding process has good potential to extend the field of applications of laser technology, and provide significant improvements in weld quality and process efficiency in manufacturing applications. The objective of this research is to present a parameter set-up for laser–arc hybrid welding processes, introduce a methodical comparison of the chosen parameters, and discuss how this technology may be adopted in industrial applications. The research describes the principles, means and applications of different types of laser–arc hybrid welding processes. Conducted experiment processing variables are presented and compared using an analytical model which can also be used for predictive simulations. The main argument in this thesis is that profound understanding of the advanced technology of laser-arc hybrid welding will help improve the productivity of welding in industrial applications. Based on a review of the current knowledge base, important areas for further research are also identified. This thesis consists of two parts. The first part introduces the research topic and discusses laser–arc hybrid welding by characterizing its mechanism and most important variables. The second part comprises four research papers elaborating on the performance of laser– arc hybrid welding in the joining of metals. The study uses quantitative and qualitative research methods which include in-depth, interpretive analyses of results from a number of research groups. In the interpretive analysis, the emphasis is placed on the relevance and usefulness of the investigative results drawn from other research publications. The results of this study contribute to research on laser–arc hybrid welding by increasing understanding of how old and new perspectives on laser–arc hybrid welding are evidenced in industry. The research methodology applied permits continued exploration of how laser–arc hybrid welding and various process factors influence the overall quality of the weld. Thestudy provides a good foundation for future research, creates improved awareness of the laser–arc hybrid welding process, and assists the metal industry to maximize welding productivity.

IT Financial Management In a Large Industrial Company

IT Service Management plays a key role in many IT organizations today. First IT Service Management principles founded in the early 1980s but the real adaption emerged in the end 2000s. IT Financial Management is one of IT Service Management’s processes. The main purpose of this thesis was study how IT Financial Management approach can be improved in a case company. Budgeting, accounting and charging are IT Financial Management functions. These functions are researched in this thesis. Thesis materials consist of both qualitative and quantitative material. The theoretical part consists mostly of IT Service Management literature while interviews and the case company’s information systems are researched in the empirical part. Thesis also reviews different kind of the systems which supports and automates IT Financial Management functions. The biggest challenge is the cost allocation with the current ERP system in the case company. It is worth to take group based system for allocation in use before there is a holistic system in a market. The case company should also develop its IT service processes forward.

Measuring Cost of Poor Quality in Industrial Electronics

Quality is not only free but it can be a profit maker. Every dollar that is not spent on doing things wrong becomes a dollar right on the bottom line. The main objective of this thesis is to give an answer on how cost of poor quality can be measured theoretically correctly. Different calculation methods for cost of poor quality are presented and discussed in order to give comprehensive picture about measurement process. The second objective is to utilize the knowledge from the literature review and to apply it when creating a method for measuring cost of poor quality in supplier performance rating. Literature review indicates that P-A-F model together with ABC methodology provides a mean for quality cost calculations. These models give an answer what should be measured and how this measurement should be carried out. However, when product or service quality costs are incurred when quality character derivates from target value, then QLF seems to be most appropriate methodology for quality cost calculation. These methodologies were applied when creating a quality cost calculation method for supplier performance ratings.

Self-Assessment Report for International Accreditation – Bachelor’s and Master’s degree programmes in Industrial Management

Self-assessment report for accreditation of the Bachelor's and Master's degree programs in Industrial Management.

Post-industrial 2.0 – Social Web as the second coming of the post-industrial society

This study presents a review of theories of the so-called post-industrial society, and proposes that the concept of post-industrial society can be used to understand the recent developments of the World Wide Web, often described as Web 2.0 or social Web. The study combines theories ranging from post-war management science and cultural studies to software development, and tries to build a holistic view of the development of the post-industrial society, and especially the Internet. The discourse on the emergence of a post-industrial society after the World Wars has addressed the ways in which the growing importance of information, and innovations in digital communications technology, are changing our society. It is furthermore deeply connected with the discourse on the postmodern society, which emphasizes cultural fragmentation, intertextuality, and pluralism. The Internet age is characterized by increasing masses of information that are managed through various technologies. While 1990s Internet technologies often used the network as a traditional broadcasting channel with added interactivity, Web 2.0 technologies are specifically designed to utilize the network model by facilitating communication between various services and devices, and analyzing the relationships between users and objects in order to produce intelligent insight. The wide adoption of the Internet, and recently of Internet-enabled mobile devices, is furthermore continuously producing new ways of communicating, consuming, and producing. Applications of the social Web, such as social media or social networking services, are permanently changing our traditional social, cultural, and economic practices. The study first presents an overview of the post-industrial society, the Internet, and the concept of Web 2.0. Then the concept of social Web is described with an analysis of the term social media, the brief histories of the interactive Web and social networking services, and a description of the concept ―long tail‖, used to represent the masses of information available in the Web that do not receive mainstream attention. Finally, methods for retrieving and filtering information, modeling social and cultural relationships, and communicating with customers, are presented.