The impact of supply chain performance measurement systems on dynamic behaviour in supply chains

The amplification of demand variation up a supply chain widely termed ‘the Bullwhip Effect’ is disruptive, costly and something that supply chain management generally seeks to minimise. Originally attributed to poor system design; deficiencies in policies, organisation structure and delays in material and information flow all lead to sub-optimal reorder point calculation. It has since been attributed to exogenous random factors such as: uncertainties in demand, supply and distribution lead time but these causes are not exclusive as academic and operational studies since have shown that orders and/or inventories can exhibit significant variability even if customer demand and lead time are deterministic. This increase in the range of possible causes of dynamic behaviour indicates that our understanding of the phenomenon is far from complete. One possible, yet previously unexplored, factor that may influence dynamic behaviour in supply chains is the application and operation of supply chain performance measures. Organisations monitoring and responding to their adopted key performance metrics will make operational changes and this action may influence the level of dynamics within the supply chain, possibly degrading the performance of the very system they were intended to measure. In order to explore this a plausible abstraction of the operational responses to the Supply Chain Council’s SCOR® (Supply Chain Operations Reference) model was incorporated into a classic Beer Game distribution representation, using the dynamic discrete event simulation software Simul8. During the simulation the five SCOR Supply Chain Performance Attributes: Reliability, Responsiveness, Flexibility, Cost and Utilisation were continuously monitored and compared to established targets. Operational adjustments to the; reorder point, transportation modes and production capacity (where appropriate) for three independent supply chain roles were made and the degree of dynamic behaviour in the Supply Chain measured, using the ratio of the standard deviation of upstream demand relative to the standard deviation of the downstream demand. Factors employed to build the detailed model include: variable retail demand, order transmission, transportation delays, production delays, capacity constraints demand multipliers and demand averaging periods. Five dimensions of supply chain performance were monitored independently in three autonomous supply chain roles and operational settings adjusted accordingly. Uniqueness of this research stems from the application of the five SCOR performance attributes with modelled operational responses in a dynamic discrete event simulation model. This project makes its primary contribution to knowledge by measuring the impact, on supply chain dynamics, of applying a representative performance measurement system.

The impact of the performance measurement systems in setting the 'direction' in the University of Warwick

This paper presents a case study examining the role of performance measurement systems in setting organizational ‘direction’. There is a growing concern in the existing literature to link the development of organizational ‘direction’ with performance measurement systems. Furthermore, the alignment between organizational ‘direction’, strategy and performance measurement is an area of increasing interest for both academics and practitioners. However, there is no adequate research recorded in the literature on the use of the performance measurement systems and the potential impact that performance measurement can have in setting the organizational ‘direction’. This study reports the findings of a case study from one of the leading academic institutions in the UK, the University of Warwick, presenting the main characteristics of its performance measurement system and attempting to explain the connection with setting the university’s ‘direction’.

A hybrid measurement systems analysis and uncertainty of measurement approach for industrial measurement in the light controlled factory

The uncertainty of measurements must be quantified and considered in order to prove conformance with specifications and make other meaningful comparisons based on measurements. While there is a consistent methodology for the evaluation and expression of uncertainty within the metrology community industry frequently uses the alternative Measurement Systems Analysis methodology. This paper sets out to clarify the differences between uncertainty evaluation and MSA and presents a novel hybrid methodology for industrial measurement which enables a correct evaluation of measurement uncertainty while utilising the practical tools of MSA. In particular the use of Gage R&R ANOVA and Attribute Gage studies within a wider uncertainty evaluation framework is described. This enables in-line measurement data to be used to establish repeatability and reproducibility, without time consuming repeatability studies being carried out, while maintaining a complete consideration of all sources of uncertainty and therefore enabling conformance to be proven with a stated level of confidence. Such a rigorous approach to product verification will become increasingly important in the era of the Light Controlled Factory with metrology acting as the driving force to achieve the right first time and highly automated manufacture of high value large scale products such as aircraft, spacecraft and renewable power generation structures.

A comparison of two distributed large-volume measurement systems:the mobile spatial co-ordinate measuring system and the indoor global positioning system

Advances in the area of industrial metrology have generated new technologies that are capable of measuring components with complex geometry and large dimensions. However, no standard or best-practice guides are available for the majority of such systems. Therefore, these new systems require appropriate testing and verification in order for the users to understand their full potential prior to their deployment in a real manufacturing environment. This is a crucial stage, especially when more than one system can be used for a specific measurement task. In this paper, two relatively new large-volume measurement systems, the mobile spatial co-ordinate measuring system (MScMS) and the indoor global positioning system (iGPS), are reviewed. These two systems utilize different technologies: the MScMS is based on ultrasound and radiofrequency signal transmission and the iGPS uses laser technology. Both systems have components with small dimensions that are distributed around the measuring area to form a network of sensors allowing rapid dimensional measurements to be performed in relation to large-size objects, with typical dimensions of several decametres. The portability, reconfigurability, and ease of installation make these systems attractive for many industries that manufacture large-scale products. In this paper, the major technical aspects of the two systems are briefly described and compared. Initial results of the tests performed to establish the repeatability and reproducibility of these systems are also presented. © IMechE 2009.

Institutional complexity in Thai state-owned enterprises:the implementation of performance measurement systems

This study explores institutional complexity in Thai State-Owned Enterprises (SOEs). In doing so, a qualitative approach has been employed in this study in order to identify institutional logics in the field of Thai SOEs and to understand organisational and individual perceptions of institutional complexity in the implementation of performance measurement systems (PMS) and how they respond to the complexity. To achieve this goal, two Thai SOEs were studied, both of which faced challenges in the implementation of Economic Value Management (EVM) and Balance Scorecard (BSC) as well as difficulties in linking their individual BSC and incentive systems. The qualitative data were collected from semi-structured interviews and document reviews. The empirical aspects of this study reveal that the institutional logics in the field of Thai SOEs are the logic of bureaucracy, commercial operations, social activities, seniority and unity. Regarding the multiple institutional logics embedded, SOEs experienced the institutional complexity in the implementation of PMS. The results suggest that the organisations have decoupled the EVM and loosely coupled the BSC from organisational practices to cope with institutional complexity and conflict institutional demands. Also, the evidence shows that the institutional logics influence SOEs’ actions towards resisting changes incentive systems and the relationship between individual BSC and incentives.

An improved conflicting evidence combination approach based on a new supporting probability distance

To avoid counter-intuitive result of classical Dempster's combination rule when dealing with highly conflict information, many improved combination methods have been developed through modifying the basic probability assignments (BPAs) of bodies of evidence (BOEs) by using a certain measure of the degree of conflict or uncertain information, such as Jousselme's distance, the pignistic probability distance and the ambiguity measure. However, if BOEs contain some non-singleton elements and the differences among their BPAs are larger than 0.5, the current conflict measure methods have limitations in describing the interrelationship among the conflict BOEs and may even lead to wrong combination results. In order to solve this problem, a new distance function, which is called supporting probability distance, is proposed to characterize the differences among BOEs. With the new distance, the information of how much a focal element is supported by the other focal elements in BOEs can be given. Also, a new combination rule based on the supporting probability distance is proposed for the combination of the conflicting evidences. The credibility and the discounting factor of each BOE are generated by the supporting probability distance and the weighted BOEs are combined directly using Dempster's rules. Analytical results of numerical examples show that the new distance has a better capability of describing the interrelationships among BOEs, especially for the highly conflicting BOEs containing non-singleton elements and the proposed new combination method has better applicability and effectiveness compared with the existing methods.

The application of uncertainty evaluating software for the utilisation of machine tool systems for final inspection

As machine tools continue to become increasingly repeatable and accurate, high-precision manufacturers may be tempted to consider how they might utilise machine tools as measurement systems. In this paper, we have explored this paradigm by attempting to repurpose state-of-the-art coordinate measuring machine Uncertainty Evaluating Software (UES) for a machine tool application. We performed live measurements on all the systems in question. Our findings have highlighted some gaps with UES when applied to machine tools, and we have attempted to identify the sources of variation which have led to discrepancies. Implications of this research include requirements to evolve the algorithms within the UES if it is to be adapted for on-machine measurement, improve the robustness of the input parameters, and most importantly, clarify expectations.

Eco-efficiency measurement and material balance principle:an application in power plants Malmquist Luenberger Index

Incorporating Material Balance Principle (MBP) in industrial and agricultural performance measurement systems with pollutant factors has been on the rise in recent years. Many conventional methods of performance measurement have proven incompatible with the material flow conditions. This study will address the issue of eco-efficiency measurement adjusted for pollution, taking into account materials flow conditions and the MBP requirements, in order to provide ‘real’ measures of performance that can serve as guides when making policies. We develop a new approach by integrating slacks-based measure to enhance the Malmquist Luenberger Index by a material balance condition that reflects the conservation of matter. This model is compared with a similar model, which incorporates MBP using the trade-off approach to measure productivity and eco-efficiency trends of power plants. Results reveal similar findings for both models substantiating robustness and applicability of the proposed model in this paper.

Measurement resource planning:a methodology that uses quality characteristics mapping

Integration of the measurement activity into the production process is an essential rule in digital enterprise technology, especially for large volume product manufacturing, such as aerospace, shipbuilding, power generation and automotive industries. Measurement resource planning is a structured method of selecting and deploying necessary measurement resources to implement quality aims of product development. In this research, a new mapping approach for measurement resource planning is proposed. Firstly, quality aims are identified in the form of a number of specifications and engineering requirements of one quality characteristics (QCs) at a specific stage of product life cycle, and also measurement systems are classified according to the attribute of QCs. Secondly, a matrix mapping approach for measurement resource planning is outlined together with an optimization algorithm for combination between quality aims and measurement systems. Finally, the proposed methodology has been studied in shipbuilding to solve the problem of measurement resource planning, by which the measurement resources are deployed to satisfy all the quality aims. © Springer-Verlag Berlin Heidelberg 2010.

Nonlinear loop mirror-based all-optical signal processing in fiber-optic communications

All-optical data processing is expected to play a major role in future optical communications. The fiber nonlinear optical loop mirror (NOLM) is a valuable tool in optical signal processing applications. This paper presents an overview of our recent advances in developing NOLM-based all-optical processing techniques for application in fiber-optic communications. The use of in-line NOLMs as a general technique for all-optical passive 2R (reamplification, reshaping) regeneration of return-to-zero (RZ) on-off keyed signals in both high-speed, ultralong-distance transmission systems and terrestrial photonic networks is reviewed. In this context, a theoretical model enabling the description of the stable propagation of carrier pulses with periodic all-optical self-regeneration in fiber systems with in-line deployment of nonlinear optical devices is presented. A novel, simple pulse processing scheme using nonlinear broadening in normal dispersion fiber and loop mirror intensity filtering is described, and its employment is demonstrated as an optical decision element at a RZ receiver as well as an in-line device to realize a transmission technique of periodic all-optical RZ-nonreturn-to-zero-like format conversion. The important issue of phase-preserving regeneration of phase-encoded signals is also addressed by presenting a new design of NOLM based on distributed Raman amplification in the loop fiber. © 2008 Elsevier Inc. All rights reserved.

Shareholder or stakeholder management:strategies for performance optimisation

This paper is based upon the findings of a CIMA research project into the way which corporate performance is affected by the performance measurement system adopted. It compares and contrasts the techniques in use in a sample of large companies that use a variety of techniques. We have classified these techniques into 3 types: • Value based management techniques • Stakeholder management techniques • Traditional accounting techniques. The analysis traces the interactions between corporate objectives, decision making criteria, performance measurement systems, and executive incentive schemes in order to develop an understanding of the effects of such techniques upon corporate performance. This paper seeks to provide some answers to the following two questions: • What approach leads to superior performance for a firm? • What is different between these approaches when they are used in practice, as distinct from theory? In doing so we have drawn upon both contingency theory and sociobiology theory to develop a framework for understanding the relationship between the choke of performance measurement system and the resulting performance.

Shareholder value application in UK listed companies

This paper is based upon the initial findings of a CIMA research project into the way in which corporate performance measurement systems are influenced by the use of shareholder value management techniques. It compares and contrasts the techniques in use in a sample of 10 companies that either explicitly use shareholder value techniques also known as Value-Based Management (VBM), or explicitly do not use such techniques. The analysis undertaken is based upon the finding of semi-structured interviews with company representatives which formed the first part of the data collection process of the project. The analysis traces the interactions between corporate objectives, decision making criteria, performance measurement systems and executive incentive schemes in order to develop an understanding of the effects of such shareholder value techniques upon corporate behaviour. The literature reviewed suggests that the other aspects of the planning and control system should be aligned with the corporate objectives whether a company has adopted VBM or not. Therefore this research contributes new evidence on the use of VBM techniques in the UK and also more generally on whether VBM and non-VBM companies internal planning and control systems are aligned.

Resonant cavity Fibre Bragg grating sensor interrogation

This thesis presents a novel high-performance approach to time-division-multiplexing (TDM) fibre Bragg grating (FBG) optical sensors, known as the resonant cavity architecture. A background theory of FBG optical sensing includes several techniques for multiplexing sensors. The limitations of current wavelength-division-multiplexing (WDM) schemes are contrasted against the technological and commercial advantage of TDM. The author’s hypothesis that ‘it should be possible to achieve TDM FBG sensor interrogation using an electrically switched semiconductor optical amplifier (SOA)’ is then explained. Research and development of a commercially viable optical sensor interrogator based on the resonant cavity architecture forms the remainder of this thesis. A fully programmable SOA drive system allows interrogation of sensor arrays 10km long with a spatial resolution of 8cm and a variable gain system provides dynamic compensation for fluctuating system losses. Ratiometric filter- and diffractive-element spectrometer-based wavelength measurement systems are developed and analysed for different commercial applications. The ratiometric design provides a low-cost solution that has picometre resolution and low noise using 4% reflective sensors, but is less tolerant to variation in system loss. The spectrometer design is more expensive, but delivers exceptional performance with picometre resolution, low noise and tolerance to 13dB system loss variation. Finally, this thesis details the interrogator’s peripheral components, its compliance for operation in harsh industrial environments and several examples of commercial applications where it has been deployed. Applications include laboratory instruments, temperature monitoring systems for oil production, dynamic control for wind-energy and battery powered, self-contained sub-sea strain monitoring.

Force sensing for measuring human body movement

The research developed in this thesis explores the sensing and inference of human movement in a dynamic way, as opposed to conventional measurement systems, that are only concerned with discrete evaluations of stimuli in sequential time. Typically, conventional approaches are used to infer the dynamic movement of the body; such as vision and motion tracking devices, with either a human diagnosis or complex image processing algorithm to classify the movement. This research is therefore the first of its kind to attempt and provide a movement classifying algorithm through the use of minimal sensing points, with the application for this novel system, to classify human movement during a golf swing. There are two main categories of force sensing. Firstly, array-type systems consisting of many sensing elements, and are the most commonly researched and commercially available. Secondly, reduced force sensing element systems (RFSES) also known as distributive systems have only been recently exploited in the academic world. The fundamental difference between these systems is that array systems handle the data captured from each sensor as unique outputs and suffer the effects of resolution. The effect of resolution, is the error in the load position measurement between sensing elements, as the output is quantized in terms of position. This can be compared to a reduced sensor element system that maximises that data received through the coupling of data from a distribution of sensing points to describe the output in discrete time. Also this can be extended to a coupling of transients in the time domain to describe an activity or dynamic movement. It is the RFSES that is to be examined and exploited in the commercial sector due to its advantages over array-based approaches such as reduced design, computational complexity and cost.

Chirped fibre Bragg grating optical wear sensor

A novel sensor is demonstrated to allow a real-time measurement of the physical wear applied to the surface of an object. Two different measurement methods are presented, both utilizing the reflected power from a sacrificial chirped fibre Bragg grating to give the wear measurement. The measurement systems are simple to implement with the possibility of low cost designs depending on the application. The sensor can measure wear with a resolution of 120 μm. © 2004 IOP Publishing Ltd.