Improving reporting and internal control with process thinking - case study in a multinational corporation

The aim of this Master’s Thesis is to find applicable methods from process management literature for improving reporting and internal control in a multinational corporation. The method of analysis is qualitative and the research is conducted as a case study. Empirical data collection is carried out through interviews and participating observation. The theoretical framework is built around reporting and guidance between parent company and subsidiary, searching for means to improve them from process thinking and applicable frameworks. In the thesis, the process of intercompany reporting in the case company is modelled, and its weak points, risks, and development targets are identified. The framework of critical success factors in process improvement is utilized in assessing the development targets. Also internal control is analyzed with the tools of process thinking. As a result of this thesis, suggestions for actions improving the reporting process and internal control are made to the case company, the most essential of which are ensuring top management’s awareness and commitment to improvement, creating guidelines and tools for internal control and creating and implementing improved intercompany reporting process.

Defining Sales and Operations Planning Process in an Environmental Management Company

Sales and operations research publications have increased significantly in the last decades. The concept of sales and operations planning (S&OP) has gained increased recognition and has been put forward as the area within Supply Chain Management (SCM). Development of S&OP is based on the need for determining future actions, both for sales and operations, since off-shoring, outsourcing, complex supply chains and extended lead times make challenges for responding to changes in the marketplace when they occur. Order intake of the case company has grown rapidly during the last years. Along with the growth, new challenges considering data management and information flow have arisen due to increasing customer orders. To manage these challenges, case company has implemented S&OP process, though initial process is in early stage and due to this, the process is not managing the increased customer orders adequately. Thesis objective is to explore extensively the S&OP process content of the case company and give further recommendations. Objectives are categorized into six different groups, to clarify the purpose of this thesis. Qualitative research methods used are active participant observation, qualitative interviews, enquiry, education, and a workshop. It is notable that demand planning was felt as cumbersome, so it is typically the biggest challenge in S&OP process. More proactive the sales forecasting can be, more expanded the time horizon of operational planning will turn out. S&OP process is 60 percent change management, 30 percent process development and 10 percent technology. The change management and continuous improvement can sometimes be arduous and set as secondary. It is important that different people are required to improve the process and the process is constantly evaluated. As well as, process governance is substantially in a central role and it has to be managed consciously. Generally, S&OP process was seen important and all the stakeholders were committed to the process. Particular sections were experienced more important than others, depending on the stakeholders’ point of views. Recommendations to objective groups are evaluated by the achievable benefit and resource requirement. The urgent and easily implemented improvement recommendations should be executed firstly. Next steps are to develop more coherent process structure and refine cost awareness. Afterwards demand planning, supply planning, and reporting should be developed more profoundly. For last, information technology system should be implemented to support the process phases.

Capillary electrophoresis: Applicability and method validation for biorefinery analytics

Wood-based bioprocesses present one of the fields of interest with the most potential in the circular economy. Expanding the use of wood raw material in sustainable industrial processes is acknowledged on both a global and a regional scale. This thesis concerns the application of a capillary zone electrophoresis (CZE) method with the aim of monitoring wood-based bioprocesses. The range of detectable carbohydrate compounds is expanded to furfural and polydatin in aquatic matrices. The experimental portion has been conducted on a laboratory scale with samples imitating process samples. This thesis presents a novel strategy for the uncertainty evaluation via in-house validation. The focus of the work is on the uncertainty factors of the CZE method. The CZE equipment is sensitive to ambient conditions. Therefore, a proper validation is essential for robust application. This thesis introduces a tool for process monitoring of modern bioprocesses. As a result, it is concluded that the applied CZE method provides additional results to the analysed samples and that the profiling approach is suitable for detecting changes in process samples. The CZE method shows significant potential in process monitoring because of the capability of simultaneously detecting carbohydrate-related compound clusters. The clusters can be used as summary terms, indicating process variation and drift.

Dehydration of "dedo de moça" pepper: kinetics and phytochemical concentration

Red pepper is rich in vitamin C and other phytochemicals and can be consumed as a dehydrated product. The evaluation of the best drying conditions can ensure a better quality product. This study aimed to investigate the effect of air temperature (55, 65, and 75 ºC) on drying kinetics of red peppers and on vitamin C, total phenolic content, and color of dried pepper as compared to the fresh product. Dehydration was carried out in a forced convection oven. Drying kinetics was determined by periodic weighting until constant weight. The moisture content of the fresh pepper was approximately 86%. The drying curves were fitted to three different models available in the literature. The Page model showed the best fit for this process. Analysis of variance revealed that the air drying temperature significantly influenced (p < 0.05) the quality parameters (vitamin C content, total phenolic content, and color) of the dried pepper as compared to the fresh pepper. After drying, the vitamin C retention increased with reduced air-drying temperature. In general, products dried at lower temperatures exhibited better quality due to reduced losses of bioactive compounds.

Separation of lignin in Pulp Mill process and its effect on sodium sulphur balance

The aim of this thesis is to define effects of lignin separation process on Pulp mill chemical balance especially on sodium/sulphur-balance. The objective is to develop a simulation model with WinGEMS Process Simulator and use that model to simulate the chemical balances and process changes. The literature part explains what lignin is and how kraft pulp is produced. It also introduces to the methods that can be used to extract lignin from black liquor stream and how those methods affect the pulping process. In experimental part seven different cases are simulated with the created simulation model. The simulations are based on selected reference mill that produces 500 000 tons of bleached air-dried (90 %) pulp per year. The simulations include the chemical balance calculation and the estimated production increase. Based on the simulations the heat load of the recovery boiler can be reduced and the pulp production increased when lignin is extracted. The simulations showed that decreasing the waste acid stream intake from the chlorine dioxide plant is an effective method to control the sulphidity level when about 10 % of lignin is extracted. With higher lignin removal rates the in-mill sulphuric acid production has been discovered to be a better alternative to the sulphidity control.

Reengineering and modelling of a product certification process

Työn teoriaosuudessa tutkittiin prosessien uudelleen suunnittelua, prosessien mallintamista sekä prosessimittariston rakentamista. Työn tavoitteena oli uudelleen suunnitella organisaation sertifiointiprosessi. Tämän tavoitteen saavuttamiseksi piti mallintaa nykyinen ja uusi prosessi sekä rakentaa mittaristo, joka antaisi organisaatiolle arvokasta tietoa siitä, kuinka tehokkaasti uusi prosessi toimii. Työ suoritettiin osallistuvana toimintatutkimuksena. Diplomityön tekijä oli toiminut kohdeorganisaatiossa työntekijänä jo useita vuosia ja pystyi näinollen hyödyntämään omaa tietämystään sekä nykyisen prosessin mallintamisessa, että uuden prosessin suunnittelussa. Työn tuloksena syntyi uusi sertifiointiprosessi, joka on karsitumpi ja tehokkaampi kuin edeltäjänsä. Uusi mittaristojärjestelmä rakennettiin, jota organisaation johto kykenisi seuraamaan prosessin sidosryhmien tehokkuutta sekä tuotteiden laadun kehitystä. Sivutuotteena organisaatio sai käyttöönsä yksityiskohtaiset prosessikuvaukset, joita voidaan hyödyntää koulutusmateriaalina uutta henkilöstöä rekrytoitaessa sekä informatiivisena työkaluna esiteltäessä prosessia virallisille sertifiointitahoille.

Industry specific lifecycle services for process critical motors

This Master’s Thesis examines industrial service business and studies how Global Technical Support Center Finland, part of ABB Oy, can develop its lifecycle services based on availability related customer needs. Focus is in three most business critical industry segments OGP (Oil, Gas and Petrochemical), Power and Metals. The research was conducted as a qualitative case study, including literature review and empirical part. The literature review explores industrial service business, product lifecycle services and related customer needs, product effectiveness and maintenance. This study contains also characteristics of constructive research. Primary material was gathered through internal and external interviews. Both theme and semi-structured interviews were performed. This research has shown that customers have different needs depending of the industry segment where they operate. Most remarkable differences are related to maintenance schedules. The main outcomes of the study are the industry specific lifecycle service models that combine company recommendations with customer specific needs. Other development needs were related to proactivity, condition based monitoring, information sharing and lifecycle estimations.

Increased profitability and efficiency by improving the Meetings & Events Category S2P-process – Case Company

The purpose of this research was to examine the most optimal way to arrange meetings and events management and source to pay –process in a global company. The research is a qualitative multi-method case study and is a commission from a global company. The theoretical framework of this research structures around two approaches. First approach focus on a purchasing strategy and management that shows the current role of procure-ment and introduce different ways to organize purchasing functions. Second approach focus on purchasing process management and improvement methods. Annual spend analyze, external and internal interviews and internal survey were done to gain compre-hensive knowledge about the current state of operations and possible solutions. Gathered data were then combined to theoretical framework in order to create optimal solution for the case company. Based on the research a source to pay –process and global policy for meeting and event category was created. The solution includes all relevant matters that are needed in order to secure efficient and profitable operations. The results show that optimal way to arrange meetings and events structures around standardized source to pay –processes, central-ized procurement, preferred supplier and clearly defined roles and responsibilities be-tween different stakeholders.

Monitoring Directed Energy Deposition Processes in Additive Manufacturing

The purpose of this study is to find out how laser based Directed Energy Deposition processes can benefit from different types of monitoring. DED is a type of additive manufacturing process, where parts are manufactured in layers by using metallic powder or metallic wire. DED processes can be used to manufacture parts that are not possible to manufacture with conventional manufacturing processes, when adding new geometries to existing parts or when wanting to minimize the scrap material that would result from machining the part. The aim of this study is to find out why laser based DED-processes are monitored, how they are monitored and what devices are used for monitoring. This study has been done in the form of a literature review. During the manufacturing process, the DED-process is highly sensitive to different disturbances such as fluctuations in laser absorption, powder feed rate, temperature, humidity or the reflectivity of the melt pool. These fluctuations can cause fluctuations in the size of the melt pool or its temperature. The variations in the size of the melt pool have an effect on the thickness of individual layers, which have a direct impact on the final surface quality and dimensional accuracy of the parts. By collecting data from these fluctuations and adjusting the laser power in real-time, the size of the melt pool and its temperature can be kept within a specified range that leads to significant improvements in the manufacturing quality. The main areas of monitoring can be divided into the monitoring of the powder feed rate, the temperature of the melt pool, the height of the melt pool and the geometry of the melt pool. Monitoring the powder feed rate is important when depositing different material compositions. Monitoring the temperature of the melt pool can give information about the microstructure and mechanical properties of the part. Monitoring the height and the geometry of the melt pool is an important factor in achieving the desired dimensional accuracy of the part. By combining multiple different monitoring devices, the amount of fluctuations that can be controlled will be increased. In addition, by combining additive manufacturing with machining, the benefits of both processes could be utilized.

Markovian Processes, Two-Sided Autoregressions and Finite-Sample Inference for Stationary and Nonstationary Autoregressive Processes.

In this paper, we develop finite-sample inference procedures for stationary and nonstationary autoregressive (AR) models. The method is based on special properties of Markov processes and a split-sample technique. The results on Markovian processes (intercalary independence and truncation) only require the existence of conditional densities. They are proved for possibly nonstationary and/or non-Gaussian multivariate Markov processes. In the context of a linear regression model with AR(1) errors, we show how these results can be used to simplify the distributional properties of the model by conditioning a subset of the data on the remaining observations. This transformation leads to a new model which has the form of a two-sided autoregression to which standard classical linear regression inference techniques can be applied. We show how to derive tests and confidence sets for the mean and/or autoregressive parameters of the model. We also develop a test on the order of an autoregression. We show that a combination of subsample-based inferences can improve the performance of the procedure. An application to U.S. domestic investment data illustrates the method.

Aggregations and Marginalization of GARCH and Stochastic Volatility Models

The GARCH and Stochastic Volatility paradigms are often brought into conflict as two competitive views of the appropriate conditional variance concept : conditional variance given past values of the same series or conditional variance given a larger past information (including possibly unobservable state variables). The main thesis of this paper is that, since in general the econometrician has no idea about something like a structural level of disaggregation, a well-written volatility model should be specified in such a way that one is always allowed to reduce the information set without invalidating the model. To this respect, the debate between observable past information (in the GARCH spirit) versus unobservable conditioning information (in the state-space spirit) is irrelevant. In this paper, we stress a square-root autoregressive stochastic volatility (SR-SARV) model which remains true to the GARCH paradigm of ARMA dynamics for squared innovations but weakens the GARCH structure in order to obtain required robustness properties with respect to various kinds of aggregation. It is shown that the lack of robustness of the usual GARCH setting is due to two very restrictive assumptions : perfect linear correlation between squared innovations and conditional variance on the one hand and linear relationship between the conditional variance of the future conditional variance and the squared conditional variance on the other hand. By relaxing these assumptions, thanks to a state-space setting, we obtain aggregation results without renouncing to the conditional variance concept (and related leverage effects), as it is the case for the recently suggested weak GARCH model which gets aggregation results by replacing conditional expectations by linear projections on symmetric past innovations. Moreover, unlike the weak GARCH literature, we are able to define multivariate models, including higher order dynamics and risk premiums (in the spirit of GARCH (p,p) and GARCH in mean) and to derive conditional moment restrictions well suited for statistical inference. Finally, we are able to characterize the exact relationships between our SR-SARV models (including higher order dynamics, leverage effect and in-mean effect), usual GARCH models and continuous time stochastic volatility models, so that previous results about aggregation of weak GARCH and continuous time GARCH modeling can be recovered in our framework.

Exploration de la relation entre l’évaluation à l’aide d’examens à la fin du primaire et l’apprentissage par la lecture d’élèves en difficulté d’apprentissage

De nos jours, il ne suffit pas de décoder pour être considéré comme alphabétisé, il faut aussi être capable de comprendre différents types de textes et d'utiliser avec efficience les informations qu'ils présentent (MELS, 2006). Le redoublement et le retard scolaire au primaire étant le plus souvent attribuables aux difficultés en lecture et en écriture et ces faiblesses se répercutant sur la réussite des élèves dans toutes les matières (Stetson et Williams, 1992), l'importance de présenter aux élèves des situations d'apprentissage complexes qui les soutiendront dans leur apprentissage par la lecture est sans équivoque. Surtout que Horton et Lovitt (1994) mentionnent que les échecs scolaires seraient étroitement liés aux difficultés que ces élèves éprouvent lorsqu'ils apprennent en lisant. Cette étude a été réalisée à partir des données collectées dans la recherche menée en 2003-2004 par Chouinard, Bowen, Cartier, Desbiens, Laurier, Plante (2005) intitulée: «L'effet de différentes approches évaluatives sur l'engagement et la persévérance scolaire dans le contexte du passage du primaire au secondaire» (Chouinard et coll., 2005). L’objectif de la présente étude était d’explorer la relation entre l’évaluation à l’aide d’examens d'enseignants de la fin du primaire et l’apprentissage par la lecture d'élèves en difficulté d'apprentissage. Pour ce faire, deux sous-objectifs ont été retenus : (1) Comparer la relation entre les deux types d’élèves (élèves ordinaires et élèves en difficulté d’apprentissage) et le processus d’apprentissage par la lecture et (2) Comparer la relation entre les niveaux d’identification d’évaluation à l’aide d’examens des enseignants et le processus d’apprentissage par la lecture. Les trois principaux concepts de la question de recherche sont la difficulté d'apprentissage, l'apprentissage par la lecture et les pratiques évaluatives, dont l’évaluation à l’aide d’examens. Une analyse des caractéristiques des 22 recherches répertoriées a permis constater que très peu de recherche traitent de la relation entre les pratiques évaluatives et le processus d'apprentissage des élèves du primaire et encore moins impliquent des élèves en difficulté d'apprentissage. ii Afin de répondre à l'objectif de la présente étude, une recherche de type exploratoire dans une approche quantitative a été retenue. Des analyses descriptives (moyennes et écart-type), suivie par une analyse multivariée de la variance (MANOVA) à deux niveaux (2x2) ont été effectuées. Ensuite, des analyses univariées ont été conduites sur les variables qui présentaient des relations significatives afin de mieux cibler ces relations. Cent six enseignants et leurs 1864 élèves ont accepté de répondre à deux questionnaires auto-déclarés : Le questionnaire sur les pratiques évaluatives (Chouinard et coll., 2005) a été utilisé auprès des enseignants. Le questionnaire sur l'apprentissage par la lecture: Lire pour apprendre de Cartier et Butler (version 2004) a été utilisé auprès des élèves. Les résultats en lien avec les objectifs de cette étude indiquent un effet d'interaction significatif entre l’identification des enseignants à l’évaluation à l’aide d’examens (forte ou faible) et les types d'élèves (élèves en difficulté d’apprentissage et élèves ordinaires). Les élèves en difficulté d’apprentissage interprètent davantage les exigences de l’activité que les élèves ordinaires lorsqu’ils sont dans ce contexte. On remarque aussi que les élèves en difficulté d’apprentissage rapportent recourir davantage aux stratégies d’encodage et de rappel que les élèves ordinaires et ce, peu importe l’identification des enseignants à l’évaluation à l’aide d’examens. Les résultats en lien avec le premier sous-objectif ont montré une relation significative entre les types d’élèves (élèves en difficulté d’apprentissage et élèves ordinaires) et le processus d’apprentissage par la lecture. Cette relation significative se situe sur l’engagement périphérique et les stratégies cognitives. Aussi, les résultats en lien avec le deuxième sous-objectif ont révélé une relation significative entre l’évaluation à l’aide d’examens et le processus d’apprentissage par la lecture.

On Truncated Versions of Certain Measures of Inequality and Stability

The present study focuses attention on defining certain measures of income inequality for the truncated distributions and characterization of probability distributions using the functional form of these measures, extension of some measures of inequality and stability to higher dimensions, characterization of bivariate models using the above concepts and estimation of some measures of inequality using the Bayesian techniques. The thesis defines certain measures of income inequality for the truncated distributions and studies the effect of truncation upon these measures. An important measure used in Reliability theory, to measure the stability of the component is the residual entropy function. This concept can advantageously used as a measure of inequality of truncated distributions. The geometric mean comes up as handy tool in the measurement of income inequality. The geometric vitality function being the geometric mean of the truncated random variable can be advantageously utilized to measure inequality of the truncated distributions. The study includes problem of estimation of the Lorenz curve, Gini-index and variance of logarithms for the Pareto distribution using Bayesian techniques.

The social dimension: a neglected policy item in the Bologna Process

Since its beginning in 1999, the Bologna Process has influenced various aspects of higher education in its member countries, e.g., degree structures, mobility, lifelong learning, social dimension and quality assurance. The social dimension creates the focus of this research. The social dimension entered the Bologna Process agenda in 2001. Despite a decade of reforms, it somehow remained as a vague element and received low scholarly attention. This research addresses to this gap. Firstly, different meanings of the social dimension according to the major European policy actors are analysed. Unfolding the understandings of the actors revealed that the social dimension is mostly understood in terms reflecting the diversity of population on the student body accessing to, progressing in and completing higher education, with a special concern on the underrepresented groups. However, it is not possible to observe a similar commonality concerning the actual policy measures to achieve this goal. Divergence occurs with respect to the addressed underrepresented groups, i.e., all underrepresented groups or people without formal qualifications and mature learners, and the values and institutional interests traditionally promoted by these actors. Secondly, the dissertation discusses the reflection of this social dimension understanding at the national level by looking at cases of Finland, Germany and Turkey. The in-depth analyses show an awareness of the social dimension among most of the national Bologna Process actors and a common understanding of the social dimension goals. However, this understanding has not triggered action in any of the countries. The countries acted on areas which they defined problematic before the Bologna Process. Finally, based on these findings the dissertation discusses the social dimension as a policy item that managed to get into the Bologna Process agenda, but neither grew into an implementable policy, nor drop out of it. To this aim, it makes use of the multiple streams framework and explains the low agenda status social dimension with: i. the lack of a pressing problem definition: the lack of clearly defined indicators and a comprehensive monitoring system, ii. the lack of a viable solution alternative: the proposal of developing national strategies and action plans closed the way to develop generic guidelines for the social dimension to be translated into national policy processes, iii. low political perceptivity: the recent trends opt for increasing efficiency, excellence and exclusiveness discourses rather than ensuring equality and inclusiveness iv. high constraints: the social dimension by definition requires more public funding which is less appreciated and strategic constraints of the actors in allocating their resources v. the type of policy entrepreneur: the social dimension is promoted by an international stakeholder, the European Students’ Union, instead of the ministers responsible for higher education The social dimension remains a policy item in the Bologna Process which is noble enough to agree but not urgent enough to act on.

Option pricing in market models driven by telegraph processes with jumps

Esta tesis está dividida en dos partes: en la primera parte se presentan y estudian los procesos telegráficos, los procesos de Poisson con compensador telegráfico y los procesos telegráficos con saltos. El estudio presentado en esta primera parte incluye el cálculo de las distribuciones de cada proceso, las medias y varianzas, así como las funciones generadoras de momentos entre otras propiedades. Utilizando estas propiedades en la segunda parte se estudian los modelos de valoración de opciones basados en procesos telegráficos con saltos. En esta parte se da una descripción de cómo calcular las medidas neutrales al riesgo, se encuentra la condición de no arbitraje en este tipo de modelos y por último se calcula el precio de las opciones Europeas de compra y venta.