Lectio praecursoria : Systems between information and knowledge : in a memory management model of an extended enterprise

VTT Jouni Meriluodon valtio-opin alaan kuuluva väitöskirja Systems between information and knowledge : in a memory management model of an extended enterprise tarkastettiin 21.6.2011 Helsingin yliopistossa.

Working Capital Management Model in value chains

The objective of this Master’s thesis is to create a calculation model for working capital management in value chains. The study has been executed using literature review and constructive research methods. Constructive research methods were mainly modeling. The theory in this thesis is founded in research articles and management literature. The model is developed for students and researchers. They can use the model for working capital management and comparing firms to each other. The model can also be used to cash management. The model tells who benefits and who suffers most in the value chain. Companies and value chains cash flows can be seen. By using the model can be seen are the set targets really achieved. The amount of operational working capital can be observed. The model enables user to simulate the amount of working capital. The created model is based on cash conversion cycle, return on investment and cash flow forecasting. The model is tested with carefully considered figures which seem to be though realistic. The modeled value chain is literally a chain. Implementing this model requires from the user that he/she have some kind of understanding about working capital management and some figures from balance sheet and income statement. By using this model users can improve their knowledge about working capital management in value chains.

Long-term nutrient load management and lake restoration: Case of Säkylän Pyhäjärvi (SW Finland)

Eutrophication caused by anthropogenic nutrient pollution has become one of the most severe threats to water bodies. Nutrients enter water bodies from atmospheric precipitation, industrial and domestic wastewaters and surface runoff from agricultural and forest areas. As point pollution has been significantly reduced in developed countries in recent decades, agricultural non-point sources have been increasingly identified as the largest source of nutrient loading in water bodies. In this study, Lake Säkylän Pyhäjärvi and its catchment are studied as an example of a long-term, voluntary-based, co-operative model of lake and catchment management. Lake Pyhäjärvi is located in the centre of an intensive agricultural area in southwestern Finland. More than 20 professional fishermen operate in the lake area, and the lake is used as a drinking water source and for various recreational activities. Lake Pyhäjärvi is a good example of a large and shallow lake that suffers from eutrophication and is subject to measures to improve this undesired state under changing conditions. Climate change is one of the most important challenges faced by Lake Pyhäjärvi and other water bodies. The results show that climatic variation affects the amounts of runoff and nutrient loading and their timing during the year. The findings from the study area concerning warm winters and their influences on nutrient loading are in accordance with the IPCC scenarios of future climate change. In addition to nutrient reduction measures, the restoration of food chains (biomanipulation) is a key method in water quality management. The food-web structure in Lake Pyhäjärvi has, however, become disturbed due to mild winters, short ice cover and low fish catch. Ice cover that enables winter seining is extremely important to the water quality and ecosystem of Lake Pyhäjärvi, as the vendace stock is one of the key factors affecting the food web and the state of the lake. New methods for the reduction of nutrient loading and the treatment of runoff waters from agriculture, such as sand filters, were tested in field conditions. The results confirm that the filter technique is an applicable method for nutrient reduction, but further development is needed. The ability of sand filters to absorb nutrients can be improved with nutrient binding compounds, such as lime. Long-term hydrological, chemical and biological research and monitoring data on Lake Pyhäjärvi and its catchment provide a basis for water protection measures and improve our understanding of the complicated physical, chemical and biological interactions between the terrestrial and aquatic realms. In addition to measurements carried out in field conditions, Lake Pyhäjärvi and its catchment were studied using various modelling methods. In the calibration and validation of models, long-term and wide-ranging time series data proved to be valuable. Collaboration between researchers, modellers and local water managers further improves the reliability and usefulness of models. Lake Pyhäjärvi and its catchment can also be regarded as a good research laboratory from the point of view of the Baltic Sea. The main problem in both of them is eutrophication caused by excess nutrients, and nutrient loading has to be reduced – especially from agriculture. Mitigation measures are also similar in both cases.

Development of a New Welding Product Quality Control and Management System Model for China

The Chinese welding industry is growing every year due to rapid development of the Chinese economy. Increasingly, companies around the world are looking to use Chinese enterprises as their cooperation partners. However, the Chinese welding industry also has its weaknesses, such as relatively low quality and weak management. A modern, advanced welding management system appropriate for local socio-economic conditions is required to enable Chinese enterprises to enhance further their business development. The thesis researches the design and implementation of a new welding quality management system for China. This new system is called ‗welding production quality control management model in China‘ (WQMC). Constructed on the basis of analysis of a survey and in-company interviews, the welding management system comprises the following different elements and perspectives: a ‗Localized congenital existing problem resolution strategies‘ (LCEPRS) database, a ‗human factor designed training system‘ (HFDT) training strategy, the theory of modular design, ISO 3834 requirements, total welding management (TWM), and lean manufacturing (LEAN) theory. The methods used in the research are literature review, questionnaires, interviews, and the author‘s model design experiences and observations, i.e. the approach is primarily qualitative and phenomenological. The thesis describes the design and implementation of a HFDT strategy in Chinese welding companies. Such training is an effective way to increase employees‘ awareness of quality and issues associated with quality assurance. The study identified widely existing problems in the Chinese welding industry and constructed a LCEPRS database that can be used in efforts to mitigate and avoid common problems. The work uses the theory of modular design, TWM and LEAN as tools for the implementation of the WQMC system.

Model for managing non-core ideas to new companies, products and services in a Finnish forest company

Suomalainen metsäteollisuus on muutoksen partaalla. Uutisissa on nähty miten metsäyrityksen sulkevat tehtaita ja paperikoneita. Suomalaisessa metsäteollisuudessa keskitytään tällä hetkellä lähinnä kulujen alentamiseen ja tuottavuuden parantamiseen. Edellytyssille, että suomalainen metsäteollisuus pysyy kilpailukykyisenä, ovat kuitenkinuudet innovaatiot ja toimialojen välinen yhteistyö. Työn tavoitteena oli luoda toimintamalli UPM-Kymmene Oyj:lle, minkä avulla ydinliiketoimintaan kuulumattomat tuote- ja palveluideat saataisiin hyödynnettyä. Aihe on erittäin ajankohtainen, mikäli halutaan pitää tuotanto jatkossakin Suomessa. Luotumalli painottaa pk-sektorin roolia ja potentiaalia kehittää UPM-Kymmeneltä peräisin olevia ja heidän ydinliiketointaan kuulumattomista tuote ja palveluideoistauusia yrityksiä, tuotteita ja palveluita. Malli edustaa uudenlaista ajattelutapaa ja sen käyttöönotto vaatii perinteisen yrityskulttuurin uudistamista UPM-Kymmenessä.

Kunnossapitoyrityksen kokonaispalvelukonseptin markkinointimalli

Työn tavoitteena oli luoda sähkö- ja automaatiokunnossapidon markkinoinnin yhteistyö- ja toimintamalli sekä arvioida sähkö- ja automaatiokunnossapidon markkinoita rajatulla alueella. Kohdeyrityksenä työssä oli ABB Oy, Service. Ensin selvitettiin markkinoinnin nykytila kohdeyrityksessä sähkö- ja automaatiokunnossapidon osalta sisäisiä haastatteluja hyväksi käyttäen. Tämän jälkeen tutkittiin markkinoita ja soveltuvaa toimintatapaa sisäisten myyntilastojen ja asiakastietokantojen, sisäisten haastattelujen ja alueellisen vertailun avulla. Diplomityössä tutustuttiin haastattelujen ja seminaarien avulla myös alueen myyntikonsepteihin ja yhdistettiin olemassa olevista konsepteista myyntikonsepti, joka tukee sähkö- ja automaatiokunnossapidon markkinoinnin yhteistyötä. Työssä luotiin malli ABB Oy, Servicen Etelä-Suomen alueen sähkö- ja automaatiokunnossapidon markkinointiin. Mallissa käsiteltiin neljää osa-aluetta: toimintaa yhdistävää palvelukonseptia, organisaatiota ja organisaation muutosta, konsepteille soveltuvia asiakkaita ja markkinointitoimenpiteitä. Diplomityössä todettiin, että mallin käyttöönotto vaatii muutosjohtamista yrityksen sisällä ja mallissa ehdotettiinkin sisäisen markkinoinnin ja muutosjohtamisen keinoja mallin käyttöönottamiseksi. Toimenpide-ehdotuksena esitetään mallin pilotointia valituille asiakkaille. Lisätutkimusta tarvitaan muutamilta diplomityössä sivutuilta osa-alueilta. Näihin kuuluvat esimerkiksi tarkan asiakaskohtaisen kunnossapidon tarpeen määrittäminen eri asiakasyrityksissä sekä yhteistyökuvion määrittäminen niiden konseptiin liittyvien ABB:n sisäisten tahojen kanssa, joiden osuutta ei tässä työssä käsitelty.

Competence Development and Capacity Building of Sawmill Enterprises in Kenya – A Human Resources Development Approach

The Kenyan forestry and sawmilling industry have been subject to a changing environment since 1999 when the industrial forest plantations were closed down. This has lowered raw material supply and it has affected and reduced the sawmill operations and the viability of the sawmill enterprises. The capacity of the 276 registered sawmills is not sufficient to fulfill sawn timber demand in Kenya. This is because of the technological degradation and lack of a qualified labor force, which were caused because of non-existent sawmilling education and further training in Kenya. Lack of competent sawmill workers has led to low raw material recovery, under utilization of resources and loss of employment. The objective of the work was to suggest models, methods and approaches for the competence and capacity development of the Kenyan sawmilling industry, sawmills and their workers. A nationwide field survey, interviews, questionnaire and literature review was used for data collection to find out the sawmills’ competence development areas and to suggest models and methods for their capacity building. The sampling frame included 22 sawmills that represented 72,5% of all the registered sawmills in Kenya. The results confirmed that the sawmills’ technological level was backwards, productivity low, raw material recovery unacceptable and workers’ professional education low. The future challenges will be how to establish the sawmills’ capacity building and workers’ competence development. Sawmilling industry development requires various actions through new development models and approaches. Activities should be started for technological development and workers’ competence development. This requires re-starting of vocational training in sawmilling and the establishment of more effective co-operation between the sawmills and their stakeholder groups. In competence development the Enterprise Competence Management Model of Nurminen (2007) can be used, whereas the best training model and approach would be a practically oriented learning at work model in which the short courses, technical assistance and extension services would be the key functions.

Methods for assessing the sustainability of integrated municipal waste management and

The general striving to bring down the number of municipal landfills and to increase the reuse and recycling of waste-derived materials across the EU supports the debates concerning the feasibility and rationality of waste management systems. Substantial decrease in the volume and mass of landfill-disposed waste flows can be achieved by directing suitable waste fractions to energy recovery. Global fossil energy supplies are becoming more and more valuable and expensive energy sources for the mankind, and efforts to save fossil fuels have been made. Waste-derived fuels offer one potential partial solution to two different problems. First, waste that cannot be feasibly re-used or recycled is utilized in the energy conversion process according to EU’s Waste Hierarchy. Second, fossil fuels can be saved for other purposes than energy, mainly as transport fuels. This thesis presents the principles of assessing the most sustainable system solution for an integrated municipal waste management and energy system. The assessment process includes: · formation of a SISMan (Simple Integrated System Management) model of an integrated system including mass, energy and financial flows, and · formation of a MEFLO (Mass, Energy, Financial, Legislational, Other decisionsupport data) decision matrix according to the selected decision criteria, including essential and optional decision criteria. The methods are described and theoretical examples of the utilization of the methods are presented in the thesis. The assessment process involves the selection of different system alternatives (process alternatives for treatment of different waste fractions) and comparison between the alternatives. The first of the two novelty values of the utilization of the presented methods is the perspective selected for the formation of the SISMan model. Normally waste management and energy systems are operated separately according to the targets and principles set for each system. In the thesis the waste management and energy supply systems are considered as one larger integrated system with one primary target of serving the customers, i.e. citizens, as efficiently as possible in the spirit of sustainable development, including the following requirements: · reasonable overall costs, including waste management costs and energy costs; · minimum environmental burdens caused by the integrated waste management and energy system, taking into account the requirement above; and · social acceptance of the selected waste treatment and energy production methods. The integrated waste management and energy system is described by forming a SISMan model including three different flows of the system: energy, mass and financial flows. By defining the three types of flows for an integrated system, the selected factor results needed in the decision-making process of the selection of waste management treatment processes for different waste fractions can be calculated. The model and its results form a transparent description of the integrated system under discussion. The MEFLO decision matrix has been formed from the results of the SISMan model, combined with additional data, including e.g. environmental restrictions and regional aspects. System alternatives which do not meet the requirements set by legislation can be deleted from the comparisons before any closer numerical considerations. The second novelty value of this thesis is the three-level ranking method for combining the factor results of the MEFLO decision matrix. As a result of the MEFLO decision matrix, a transparent ranking of different system alternatives, including selection of treatment processes for different waste fractions, is achieved. SISMan and MEFLO are methods meant to be utilized in municipal decision-making processes concerning waste management and energy supply as simple, transparent and easyto- understand tools. The methods can be utilized in the assessment of existing systems, and particularly in the planning processes of future regional integrated systems. The principles of SISMan and MEFLO can be utilized also in other environments, where synergies of integrating two (or more) systems can be obtained. The SISMan flow model and the MEFLO decision matrix can be formed with or without any applicable commercial or free-of-charge tool/software. SISMan and MEFLO are not bound to any libraries or data-bases including process information, such as different emission data libraries utilized in life cycle assessments.

Development of IT Service Management in a Large International Company

The purpose of this Master’s thesis is to examine the IT Service Management (ITSM) capabilities of a large international company and develop a design for the IT Service Management of the company. The thesis consists of two parts: a literature review and a case study. The first part is the literature review. It examines different aspects of IT Service Management. The purpose of the literature review is to increase the credibility of the case study. In the case study, the IT Service Management of a large industrial company is assessed, and an improved design for IT Service Management is created. The services are limited to common IT services, and management is limited to operative management. To assess and develop the case company’s IT Service Management, the IT organization and its ITSM capabilities are analyzed, and on the basis of the analyses, an improved IT Service Management model is created. As a result of the analyses, it was found out that the management of the IT organization is function-oriented. Therefore, the organization needs a management model that breaks the functional borders and brings services to the center of management. The designed model aspires to achieve this by defining IT services and modeling management processes from the service perspective.

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.

Towards Inter-organizational Working Capital Management

Working capital is an investment which is tied up into the inventories and accounts receivable and which is released with accounts payable. Due to the current business landscape with tightened financial conditions and finance markets, organizations emphasize efficient working capital management. With efficient working capital management, a company can reduce the need of finance, free up cash, increase profitability, improve liquidity, increase the efficiency of operations, and decrease (financing) costs. From the perspective of an individual company, efficient working capital management means decreasing inventory levels by shortening the cycle time of inventories, decreasing accounts receivable by shortening the trade credit terms and effective collection procedures, and increasing the level of accounts payable by paying the suppliers later. From an inter-organizational perspective, however, working capital should not be sub-optimized by a single company but holistic view to working capital management through the supply chain should be adopted to create value and improve performance together. The purpose of this research is to take academic research as well as practical management towards inter-organizational working capital management. The thesis discusses the benefits as well as mechanisms of working capital management in the inter-organizational context and has two main objectives: (1) to examine the effect of inter-organizational working capital management on performance in the value chain context and (2) to develop models of working capital management for internal as well as inter-organizational value chains. The results of the archival research conducted in the value chain of the pulp and paper industry and the value chain of the automotive industry indicate that companies can increase relative profitability by managing working capital comprehensively by taking into account all three components, and holistically though the value chain. Companies in the value chain benefit from different strategies in working capital management depending on the position of the company in the value chain. This can be taken into account in inter-organizational working capital management. The effects of inter-organizational working capital management actions on the financing costs of working capital were studied via simulations. Simulations also show that the value chain and individual companies benefit from an inter-organizational view to working capital management. Inter-organizational working capital management actions include for example: shortening the cycle time of inventories, reducing product costs, shifting inventories, shortening payment terms, and considering the cost of capital. The thesis also provides solutions for the practical requirements for tools to control working capital. The design science part of the research introduces the adjusted cash conversion cycle (ACCC) model for internal value chains, as well as models for working capital management in the inter-organizational value chain context: the working capital management model (WCMM) and the financial cycle time model (FCTM) designed in corporation and product levels respectively. This research contributes to literature on working capital management and interorganizational accounting. The research gives a holistic, inter-organizational view to the management of working capital. It advances the knowledge in working capital management on operational level, increases knowledge in the recently risen theme of supply chainoriented, collaborative working capital management, combines management accounting research with supply chain management research, and contributes to the demand of practical inter-organizational accounting methods. In addition, the research has strong practical focus as new managerial methods are introduced.

Performance measurement and management in a collaborative network

This study concerns performance measurement and management in a collaborative network. Collaboration between companies has been increased in recent years due to the turbulent operating environment. The literature shows that there is a need for more comprehensive research on performance measurement in networks and the use of measurement information in their management. This study examines the development process and uses of a performance measurement system supporting performance management in a collaborative network. There are two main research questions: how to design a performance measurement system for a collaborative network and how to manage performance in a collaborative network. The work can be characterised as a qualitative single case study. The empirical data was collected in a Finnish collaborative network, which consists of a leading company and a reseller network. The work is based on five research articles applying various research methods. The research questions are examined at the network level and at the single network partner level. The study contributes to the earlier literature by producing new and deeper understanding of network-level performance measurement and management. A three-step process model is presented to support the performance measurement system design process. The process model has been tested in another collaborative network. The study also examines the factors affecting the process of designing the measurement system. The results show that a participatory development style, network culture, and outside facilitators have a positive effect on the design process. The study increases understanding of how to manage performance in a collaborative network and what kind of uses of performance information can be identified in a collaborative network. The results show that the performance measurement system is an applicable tool to manage the performance of a network. The results reveal that trust and openness increased during the utilisation of the performance measurement system, and operations became more transparent. The study also presents a management model that evaluates the maturity of performance management in a collaborative network. The model is a practical tool that helps to analyse the current stage of the performance management of a collaborative network and to develop it further.

Evidencing and Sharing Value with Decision Making Models in an Industrial Maintenance Network

The objective of this thesis is to concretize the potential benefits that the industrial maintenance case network could achieve through using the value-based life-cycle model and the flexible asset management model. It is also inspected what factors prevent value creation and sharing in the maintenance contract practices of the case network. This thesis is a case study which utilizes modelling. Four scenarios were developed to demonstrate value creation in the future. The data was partly provided by the collaborating company, partly gathered from public financial statement information. The results indicate that value has been created through the past maintenance of the collaborating company’s rod mill and that profitability of the collaborating company has been mostly on satisfactory level during the past few years. Potential value might be created by increasing the share of proactive maintenance of the rod mill in the future. Profitability of the network could be improved in the future through flexible asset management operations. The main obstacle for value creation and sharing seems to be the lack of sufficient trust between the network members.

Evaluating digital marketing content management strategies in an international company.

The purpose of this thesis is to explore a different kind of digital content management model and to propose a process in order to manage properly the content on an organization’s website. This process also defines briefly the roles and responsibilities of the different actors implicated. In order to create this process, the thesis has been divided into two parts. First, the theoretical analysis helps to find the two main different content management models, content management adaptation and content management localization model. Each of these models, have been analyzed through a SWOT model in order to identify their particularities and which of them is the best option according to particular organizational objectives. In the empirical part, this thesis has measured the organizational website performance comparing two main data. On one hand, the international website is analyzed in order to identify the results of the content management standardization. On the other hand, content management adaptation, also called content management localization model, is analyzed by looking through the key measure of the Dutch page from the same organization. The resulted output is a process model for localization as well as recommendations on how to proceed when creating a digital content management strategy. However, more research is recommended to provide more comprehensive managerial solutions.

Managing Business Processes in Corporate Expansion

Yrityksen laajentuessa kansainvälisesti, olemassa olevat rutiinit jäävät vanhoiksi ja liiketoimintaprosessien johtaminen muuttuu. Kyseisten prosessien täytyy olla läpinäkyviä ja tietovirtojen hyvin suunniteltuja. Prosessien harmonisointi aiheuttaa haasteita yrityksessä ja konsernin etu tulee ottaa huomioon. Ahlstrom konserni laajentuu merkittävästi kaikilla liiketoiminta-alueillaan ja kansainvälinen laajentuminen vie Ahlstrom Glassfibre Oy:n täysin uuteen tilanteeseen. Liiketoimintaprosessien johtamiseen vaikuttavat konsernin ohjaus, mahdollisuudet muutosten implementoimiseksi, toimintaympäristön tekijät ja järjestelmien muodostama arkkitehtuuri. Tässä tutkimuksessa keskitytään ydinprosessien tietovirtoihin ja työ on tehty Karhulan tehtaalla Suomessa. Johtamismallin luomiseksi vaaditaan yrityksessä ongelmia määrittelevää työskentelyä. Tämä ongelmanmääritys oli työn tärkein tavoite. Ongelma-alueiden tutkimuksen pohjalta muodostettiin ratkaisu, jossa käsiteltiin systemaattisen liiketoimintaprosessien johtamisen mahdollisuuksia ja vaatimuksia. Lopputuloksena voidaan todeta, että suurin painopiste löytyy informaatioteknologian ja liiketoiminnan rajapinnoista. Tähän työhön liittyvät myös prossien harmonisointi ja integrointi.