NEMAWASHI: Attaining Value Stream alignment within Complex Organizational Networks

In the process of value creation, organizations perform an intense intra-organizational dialog through which internal VS alignment is achieved towards certain strategic objectives. Within the context of complex organizational networks, were goal conflicts are preprogrammed through incentive structures, VS alignment as legitimation of action towards strategic goals has special interest. On the one hand it facilitates the access to necessary resources for goal achievement and on the other it increases the sustainability and supports commonly agreed upon decisions leading to success. This paper provides a winnerless process (WLP) differential equations model for quantifying intra-organizational value stream (VS) alignment dynamics that can help design sustainable lean management solutions. This paper presents ongoing research results that show how the model was implemented in one industrial facility.

Global Value Chain Analysis: A Primer, 2nd Edition

The first edition of Global Value Chain Analysis: A Primer was released five years ago (May 2011) in order to provide an overview of the key concepts and methodological tools used by Duke University’s Center on Globalization, Governance & Competitiveness (Duke CGGC) a university-based research center that focuses on innovative applications of the GVC framework, which was developed by Duke CGGC’s founding director, Gary Gereffi. The Second Edition of Global Value Chain Analysis: A Primer (July 2016) retains a simple, expository style and use of recent research examples in order to offer an entry point for those wishing to better understand and use the GVC framework as a tool to analyze how local actors (firms, communities, workers) are linked to and affected by major transformations in the global economy. The GVC framework focuses on structural shifts in global industries, anchored by the core concepts of governance and upgrading. This Second Edition highlights some of the refinements in these concepts, and introduces a number of new illustrations drawing from recent Duke CGGC research. The bibliography offers a sampling of the broad array of studies available on the Duke CGGC website and in related academic publications. We hope this work stimulates continued interest in and use of the GVC framework as a tool to promote more dynamic, inclusive and sustainable development outcomes for all economies and the local actors within them.

The quality of financial information in the extractive industries: a value relevance analysis

The extractive industry is characterized by high levels of risk and uncertainty. These attributes create challenges when applying traditional accounting concepts (such as the revenue recognition and matching concepts) to the preparation of financial statements in the industry. The International Accounting Standards Board (2010) states that the objective of general purpose financial statements is to provide useful financial information to assist the capital allocation decisions of existing and potential providers of capital. The usefulness of information is defined as being relevant and faithfully represented so as to best aid in the investment decisions of capital providers. Value relevance research utilizes adaptations of the Ohlson (1995) to assess the attribute of value relevance which is one part of the attributes resulting in useful information. This study firstly examines the value relevance of the financial information disclosed in the financial reports of extractive firms. The findings reveal that the value relevance of information disclosed in the financial reports depends on the circumstances of the firm including sector, size and profitability. Traditional accounting concepts such as the matching concept can be ineffective when applied to small firms who are primarily engaged in nonproduction activities that involve significant levels of uncertainty such as exploration activities or the development of sites. Standard setting bodies such as the International Accounting Standards Board and the Financial Accounting Standards Board have addressed the financial reporting challenges in the extractive industry by allowing a significant amount of accounting flexibility in industryspecific accounting standards, particularly in relation to the accounting treatment of exploration and evaluation expenditure. Therefore, secondly this study examines whether the choice of exploration accounting policy has an effect on the value relevance of information disclosed in the financial reports. The findings show that, in general, the Successful Efforts method produces value relevant information in the financial reports of profitable extractive firms. However, specifically in the oil & gas sector, the Full Cost method produces value relevant asset disclosures if the firm is lossmaking. This indicates that investors in production and non-production orientated firms have different information needs and these needs cannot be simultaneously fulfilled by a single accounting policy. In the mining sector, a preference by large profitable mining companies towards a more conservative policy than either the Full Cost or Successful Efforts methods does not result in more value relevant information being disclosed in the financial reports. This finding supports the fact that the qualitative characteristic of prudence is a form of bias which has a downward effect on asset values. The third aspect of this study is an examination of the effect of corporate governance on the value relevance of disclosures made in the financial reports of extractive firms. The findings show that the key factor influencing the value relevance of financial information is the ability of the directors to select accounting policies which reflect the economic substance of the particular circumstances facing the firms in an effective way. Corporate governance is found to have an effect on value relevance, particularly in the oil & gas sector. However, there is no significant difference between the exploration accounting policy choices made by directors of firms with good systems of corporate governance and those with weak systems of corporate governance.

Improving IT process management through value stream mapping approach: A case study

Value-Stream mapping (VSM) is a helpful tool to identify waste and improvement areas. It has emerged as a preferred way to support and implement the lean approach. While lean principles are well-established and have broad applicability in manufacturing, their extension to information technology is still limited. Based on a case study approach, this paper presents the implementation of VSM in an IT firm as a lean IT improvement initiative. It involves mapping the current activities of the firm and identifying opportunities for improvement. After several interviews with employees who are currently involved in the process, current state map is prepared to describe the existing problem areas. Future state map is prepared to show the proposed improvement action plans. The achievements of VSM implementation are reduction in lead time, cycle time and resources. Our finding indicates that, with the new process change, total lead time can be reduced from 20 days to 3 days – 92% reduction in overall lead time for database provisioning process.

Examining Levels of Automation in the Wood Processing Industry - A case study

Companies operating in the wood processing industry need to increase their productivity by implementing automation technologies in their production systems. An increasing global competition and rising raw material prizes challenge their competitiveness. Yet, too extensive automation brings risks such as a deterioration in situation awareness and operator deskilling. The concept of Levels of Automation is generally seen as means to achieve a balanced task allocation between the operators’ skills and competences and the need for automation technology relieving the humans from repetitive or hazardous work activities. The aim of this thesis was to examine to what extent existing methods for assessing Levels of Automation in production processes are applicable in the wood processing industry when focusing on an improved competitiveness of production systems. This was done by answering the following research questions (RQ): RQ1: What method is most appropriate to be applied with measuring Levels of Automation in the wood processing industry? RQ2: How can the measurement of Levels of Automation contribute to an improved competitiveness of the wood processing industry’s production processes? Literature reviews were used to identify the main characteristics of the wood processing industry affecting its automation potential and appropriate assessment methods for Levels of Automation in order to answer RQ1. When selecting the most suitable method, factors like the relevance to the target industry, application complexity or operational level the method is penetrating were important. The DYNAMO++ method, which covers both a rather quantitative technical-physical and a more qualitative social-cognitive dimension, was seen as most appropriate when taking into account these factors. To answer RQ 2, a case study was undertaken at a major Swedish manufacturer of interior wood products to point out paths how the measurement of Levels of Automation contributes to an improved competitiveness of the wood processing industry. The focus was on the task level on shop floor and concrete improvement suggestions were elaborated after applying the measurement method for Levels of Automation. Main aspects considered for generalization were enhancements regarding ergonomics in process design and cognitive support tools for shop-floor personnel through task standardization. Furthermore, difficulties regarding the automation of grading and sorting processes due to the heterogeneous material properties of wood argue for a suitable arrangement of human intervention options in terms of work task allocation.  The application of a modified version of DYNAMO++ reveals its pros and cons during a case study which covers a high operator involvement in the improvement process and the distinct predisposition of DYNAMO++ to be applied in an assembly system.

Aplicação do multi-layer stream mapping para a gestão da eficiência de recursos e produtividade de um sistema de produção

Mestrado em Engenharia Mecânica – Especialização Gestão Industrial

Lean construction in rehabilitation works – suitability analysis and contribution for the definition of an implementation model

Proceedings IGLC-19, July 2011, Lima, Perú

Lifecycle analysis for surgery instruments at a hospital

Gli strumenti chirurgici sono importanti “devices” utilizzati come supporto indi-spensabile nella cura di pazienti negli ospedali. Essi sono caratterizzati da un intero ciclo di vita che inizia convenzionalmente nello “Store”, dove gli strumenti sterilizzati sono prelevati per essere utilizzati all’interno delle sale operatorie, e termina nuovamente nello “Store”, dove gli strumenti vengono immagazzinati per essere riutilizzati in un nuovo ciclo. Può accadere che le singole fasi del ciclo subiscano ritardi rispetto ai tempi previ-sti, non assicurando, pertanto, nelle sale operatorie, il corretto numero degli stru-menti secondo i tempi programmati. Il progetto che vado ad illustrare ha come obiettivo l’ottimizzazione del ciclo degli strumenti chirurgici all’interno di un nuovo ospedale, applicando i principi della Lean philosophy ed in particolare i metodi: “Poke Yoke, 5S e tracciabilità”. Per raggiungere tale scopo, il progetto è stato articolato come segue. In un primo momento si è osservato l’intero ciclo di vita degli strumenti nei due principali ospedali di Copenhagen (Hervel e Gentofte hospital). Ciò ha permesso di rilevare gli steps del ciclo, nonché di riscontrare sul campo i principali problemi relativi al ciclo stesso quali: bassa flessiblità, decentramento dei differenti reparti di cleaning e di store rispetto alle operation theatres ed un problema nel solleva-mento degli strumenti pesanti. Raccolte le dovute informazioni, si è passati alla fase sperimentale, in cui sono stati mappati due cicli di vita differenti, utilizzando tre strumenti di analisi: • Idef0 che consente di avere una visione gerarchica del ciclo; • Value stream Mapping che permette di evidenziare i principali sprechi del ciclo; • Simulator Tecnomatix che favorisce un punto di vista dinamico dell’analisi. Il primo ciclo mappato è stato creato con il solo scopo di mettere in risalto gli steps del ciclo e alcuni problemi rincontrati all’interno degli ospedali visitati. Il secondo ciclo, invece, è stato creato in ottica Lean al fine di risolvere alcuni tra i principali problemi riscontrati nei due ospedali e ottimizzare il primo ciclo. Si ricordi, infatti, che nel secondo ciclo le principali innovazioni introdotte sono state: l’utilizzo del Barcode e Rfid Tag per identificare e tracciare la posizione degli items, l’uso di un “Automatic and Retrievial Store” per minimizzare i tempi di inserimento e prelievo degli items e infine l’utilizzo di tre tipologie di carrello, per consentire un flessibile servizio di cura. Inoltre sono state proposte delle solu-zioni “Poke-Yoke” per risolvere alcuni problemi manuali degli ospedali. Per evidenziare il vantaggio del secondo ciclo di strumenti, è stato preso in consi-derazione il parametro “Lead time”e le due simulazioni, precedentemente create, sono state confrontate. Tale confronto ha evidenziato una radicale riduzione dei tempi (nonché dei costi associati) della nuova soluzione rispetto alla prima. Alla presente segue la trattazione in lingua inglese degli argomenti oggetto di ri-cerca. Buona lettura.

Värdeflödesanalys och Data Envelopment Analysis : En fallstudie för att värdera effektiviteten hos ett logistikföretag

Companies face new challenges almost every day. In order to stay competitive, it is important that companies strive for continuous development and improvement. By describing companies through their processes it is possible to get a clear overview of the entire operation, which can contribute, to a well-established overall understanding of the company. This is a case study based on Stort AB which is a small logistics company specialized in international transportation and logistics solutions. The purpose of this study is to perform value stream mapping in order to create a more efficient production process and propose possible improvements in order to reduce processing time. After performing value stream mapping, data envelopment analysis is used to calculate how lean Stort AB is today and how lean the company can become by implementing the proposed improvements. The results show that the production process can improve efficiency by minimizing waste produced by a bad workplace layout and over-processing. The authors suggested solution is to introduce standardized processes and invest in technical instruments in order to automate the process to reduce process time. According to data envelopment analysis the business is 41 percent lean at present and may soon become 55 percent lean and finally reach an optimum 100 percent lean mode if the process is automated.

COMPARATIVE ANALYSIS OF AMERICAN AND SPANISH CRUISE PASSENGERS' BEHAVIORAL INTENTIONS

ABSTRACT Earlier studies of cross-national differences in consumer behavior in different consumption sectors have verified that cultural differences have a strong influence on consumers. Despite the importance of cross-national analysis, no studies in the literature examine the moderating effects of nationality on the construction of behavioral intentions and their antecedents among cruise line passengers. This study investigates the moderating effects of nationality on the relationships between perceived value, satisfaction, trust and behavioral intentions among Spanish and (U.S.) American passengers of cruise lines that use Barcelona as home port and port-of-call. A theoretical model was tested with a total of 968 surveys. Structural equation models (SEMs) were used, by means of a multigroup analysis. Results of this study indicated that Spaniards showed stronger relationships between trust and behavioral intentions, and between emotional value and satisfaction. Americans presented stronger relationships between service quality and satisfaction, and between service quality and behavioral intentions.

Aplicação de metodologias Lean ao fabrico de elevadores

Num mercado cada vez mais competitivo, torna-se fundamental para as empresas produzirem mais com menos recursos, aumentando a eficiência interna, através da otimização dos seus processos. Neste contexto aparece o Lean Manufacturing, metodologia que tem como objetivo criar valor para os stakeholders, através da eliminação de desperdício na cadeia de valor. Este projeto descreve a análise e a formulação de soluções do processo de produção de um Módulo de Serviço, produto que faz parte do sistema elétrico de um elevador. Para análise do problema utilizamos técnicas e ferramentas lean, tais como, o value stream mapping (VSM), o diagrama de processo e o diagrama de spaghetti. Para formulação do problema usamos o value stream design (VSD), a metodologia 5S, o sistema Kanban e a criação de fluxo contínuo, através do conceito takt time, do sistema Pull, da definição do processo pacemaker, da programação nivelada (Heijunka), do conceito pitch time e da caixa de nivelamento (Heijunka Box). Com este projeto pretendemos demonstrar que a implementação de um fluxo unitário de peças através da filosofia Lean Manufacturing, acrescenta qualidade ao produto, cria flexibilidade, aumenta a produtividade, liberta áreas de produção, aumenta a segurança, reduz o custo com o stock e aumenta a motivação organizacional.

Implementação da filosofia Lean na gestão dos serviços de saúde: o caso português

Dissertação apresentada ao Instituto Politécnico do Porto para obtenção do Grau de Mestre em Gestão das Organizações, Ramo de Gestão de Empresas. Orientada por Prof. Dra. Maria Rosário Moreira e Prof. Dr. Paulo Sousa

Lean and quality management integration: improvement program implementation in a service company

Lean Thinking is an important pillar in the success of any program of continuous improvement process. Its tools are useful means in the analysis, control and organization of important data for correct decision making in organizations. This project had as main objective the design of a program of quality improvement in Eurico Ferreira, S.A., based on the evaluation of customer satisfaction and the implementation of 5S. Subsequently, we have selected which business area of the company to address. After the selection, there was an initial diagnostic procedure, identifying the various points of improvement to which some tools of Lean Thinking have been applied, in particular Value Stream Mapping and 5S methodology. With the first, we were able to map the current state of the process in which all stakeholders were represented as well as the flow of materials and information throughout the process. The 5S methodology allowed to act on the wastage, identifying and implementing various process improvements.

A Quantitative Model for Decomposing & Assessing the Value for the Customer

The research presented in this paper proposes a novel quantitative model for decomposing and assessing the Value for the Customer. The proposed approach builds on the different dimensions of the Value Network analysis proposed by Verna Allee having as background the concept of Value for the Customer proposed by Woodall. In this context, the Value for the Customer is modelled as a relationship established between the exchanged deliverables and a combination of tangible and intangible assets projected into their endogenous or exogenous dimensions. The Value Network Analysis of the deliverables exchange enables an in-depth understanding of this frontier and the implicit modelling of co-creation scenarios. The proposed Conceptual Model for Decomposing Value for the Customer combines several concepts: from the marketing area we have the concept of Value for the Customer; from the area of intellectual capital the concept of Value Network Analysis; from the collaborative networks area we have the perspective of the enterprise life cycle and the endogenous and exogenous perspectives; at last, the proposed model is supported by a mathematical formal description that stems from the area of Multi-Criteria Decision Making. The whole concept is illustrated in the context of a case study of an enterprise in the footwear industry (Pontechem). The merits of this approach seem evident from the contact with Pontechem as it provides a structured approach for the enterprises to assess the adequacy of their value proposition to the client/customer needs and how these relate to their endogenous and/or exogenous tangible or intangible assets. The proposed model, as a tool, may therefore be a useful instrument in supporting the commercialisation of new products and/or services.

Suitability and benefits of implementing lean production on road works

Proceedings IGLC-19, July 2011, Lima, Perú