Showing papers in "IEEE Transactions on Engineering Management in 1995"

Assessing a multidimensional measure of radical technological innovation

Abstract: For almost 30 years, innovations have been characterized as radical or incremental Nevertheless, the construct has not been precisely defined and ad hoc measures have been the norm in the literature This paper describes the development of measures which address multiple dimensions of the concept of innovation radicalness and treat it as a continuous variable A rigorous process of item development, reliability analysis, and both exploratory and confirmatory factor analysis was used The developed measures meet psychometric standards, demonstrate criterion-related validity, and capture four dimensions of radicalness: technological uncertainty, technical inexperience, business inexperience, and technology cost Findings support the conceptualization of radicalness as a continuum with multiple dimensions, and suggest that those dimensions may be differentially related to project characteristics and outcomes The utility of these measures and dimensions as diagnostic tools in project management is discussed Radicalness as a multidimensional concept is also discussed as a valuable tool in project planning, project evaluation, and understanding the strategic implications of pursuing radical innovation >

Business process management: survey and methodology

Abstract: Due to the growing concern about the competitiveness of US industry in the international marketplace, several initiatives are now underway to enhance the competitive posture of the nation's firms. Many companies are engaged in assessing ways in which their productivity, product quality, and operations can be improved. A relatively new area of such improvements is business process management (BPM). BPM can be any structured approach used to analyze and continually improve fundamental activities, such as manufacturing, marketing, communications, and other major elements of a company's operation. This paper describes a generic step-by-step method for BPM which encompasses methods employed in industry from incremental improvements to reengineering. To better understand BPM, the authors have conducted a survey of major US companies on their approaches to process quality assessment. This report summarizes the findings of the survey and work with a number of leading companies, and may be useful to quality managers and others involved in total quality management, continuous improvement, or reengineering efforts. Due to the interest in BPM, a number of methods and tools, including software, have been used or developed to aid in its implementation. The authors relate some of these methods and tools to the individual steps of the generic BPM method. >

R&D/marketing communication during the fuzzy front-end

Abstract: The planning stage of an innovation project has a great effect on the commercial performance of the project. During the "fuzzy front-end", the organization formulates a concept of the product to be developed, and determines whether or not the organization will invest resources in the concrete development of the idea. The integration of R&D and marketing activities is a necessary condition for success in innovation projects. The research question of this study is: from an information processing perspective, what role does information transfer play in integrating R&D and marketing functions during the planning stage, and what effects do project formalization and project centralization of R&D and marketing planning activities have on the efficiency of marketing and technological uncertainty reduction? The authors use an ex post facto research design to test the propositional model. The findings show that successful project teams are characterized by a maximum uncertainty reduction during planning, i.e., by a maximum decrease of R&D and marketing task variability, and a maximum increase of R&D and marketing task analyzability. Information flows between these functions help them to achieve this efficient uncertainty reduction. While project centralization has a negative effect on efficient uncertainty reduction, project formalization is curvilinearly related to the amount of uncertainty reduced during planning. >

Product development cycle time and commercial success

Abstract: Proponents of time-based competition argue that a firm will be most successful if its development times are shorter and products generated faster than its competitors. Intensive research in one firm shows that rapid development times are not correlated with expected commercial success, and that forcing rapid development when technological and market uncertainties are high may produce failure. Difficulties in technology integration, which occur when multiple core technologies must be combined, slow the speed of developing new products. New channels of distribution will also extend the time required to develop and bring new products to market. Shortened cycle times may be associated with commercial success, but to pursue reduced cycle time in isolation from underlying organizational and technical foundations will not lead to improved performance. These foundations include the longer term development and renewal of functional product architectures and manufacturing processes from which specific products can be efficiently and rapidly synthesized, as well as a product planning and control system that reaches beyond single product, single period thinking. Without these, the effort to drive down cycle time may drive the firm out of business.

Determinants and outcomes of electronic data interchange diffusion

Abstract: Protagonists of electronic data interchange (EDI), a specific form of inter organizational systems (IOS), claim that it has the potential to dramatically alter the exchange of business documents and business operations (particularly material procurement and sales functions) in a number of industries. Drawing upon past research on innovation diffusion and information systems (IS) implementation, this study examines the role of key innovation and organizational factors in influencing the extent to which EDI is diffused within organizations, and whether more extensive diffusion leads to improved organizational outcomes. Two senior executives (one from the IS and the other from selling/buying function) from over 200 large American companies participated in the field study. The path analyses results indicate that compatibility and relative advantage (two of the three classical innovation attributes), championing, scope for use of EDI within the firm's task environments, and being an early adopter determine the extent to which EDI gets internally diffused through greater integration with other IS applications within the organization. Technical compatibility, top management support and being an early adopter emerge as the key variables influencing the extent to which EDI gets externally diffused through greater external diffusion of business transactions with trading partners. The results also indicate that greater internal as well as external diffusion of EDI facilitates improved organizational outcomes that was measured on six dimensions such as implementation success, organizational performance, influence on market structure, standardization of transactions, etc.

Predicting technical communication in product development organizations

Abstract: This work explores prediction of technical communication patterns within product development organizations. Our methodology involves first predicting the patterns of communication and then measuring the actual communications to see if the anticipated linkages are realized. We applied this methodology to a commercial product development project in the electronics industry. In this case study we found that: 81% of all coordination type communication linkages were predicted in advance; occurrences of frequent communications were more accurately predicted than infrequent communications; and two-way communication exchange was most often observed, even where oneway information transfer was predicted. For the management of product development projects, these results imply that certain aspects of organizational design can be planned by anticipating the technical communication linkages required for project execution. Finally, a critical analysis of our methodology suggests improvements for future work. >

A process model for packaged software development

Abstract: As software development migrates from its roots as a process for building a custom product to a process for building packaged products, there is a greater need for an appropriate product development process model that is market-oriented. Field data suggests that process models are not widely used in the package industry. An overview of normative process models in the software engineering, engineering management, and marketing disciplines reveals that all of them fall short in one way or another for packaged software processes. Eight special needs are identified that set the packaged software process model apart from other individual models: addressing multiple user types; differentiating the product; finding the remote customer; involving the remote customer; facilitating speed of development; creating the marketing interface; developing in a highly iterative mode; and releasing a near defect-free product. These needs are operationalized into the proposed packaged software process model. The process model is based on two central constructs: a requirements loop; and a quality loop. The loops are separated by a stage in which requirements specifications are frozen. The requirements loop's goal is to discover requirements early and comprehensively. It is incremental (relying on prototyping), has several evaluation and exit points, and structures involvement of customers and other external sources such as marketing. The quality loop addresses the need to reduce defects; it begins with design and coding stages. It is also incremental and has several evaluation and exit points. >

The effects of sunk cost and project completion on information technology project escalation

Abstract: Information technology (IT) projects can fail for a variety of reasons and in some cases can result in considerable financial losses for the organizations that undertake them. One pattern of failure that has been observed but seldom studied is the runaway project that seems to take on a life of its own. Prior research has shown that such projects can exhibit characteristics of the phenomenon known as escalating commitment to a failing course of action. One explanation of escalation is the so-called sunk cost effect which posits that decision-makers are unduly influenced by resources that have already been spent and are therefore more likely to continue pursuing a previously chosen course of action. A competing explanation, labeled the completion effect holds that decision makers escalate their commitment as they draw closer to finishing the project. In order to understand more about the relative effects of sunk cost and project completion information, a role-playing experiment was conducted in which business students were asked to decide whether or not to continue funding an IT project given uncertainty regarding the prospects for success. Three variables were manipulated in the experiment: the level of sunk cost, degree of project completion, and the presence or absence of an alternative course of action. Results showed that subjects willingness to continue a project increased with the level of sunk cost and the degree of project completion, but that subjects were more apt to justify their continuation on the basis of sunk cost. As theory would predict, the presence of an alternative course of action had a moderating effect on the escalation that was observed.

Is concurrent engineering always a sensible proposition

Abstract: Currently in the literature it is apparent that there exists a strong drive towards the employment of concurrent engineering as opposed to the serial progression of products through phases. In many cases there is much advantage to be gained from the early involvement of downstream activities such as the involvement of manufacturing in the early phases of engineering. This is the basis of the entire movement towards design for manufacturability. This note is a cautionary one which shows that the precise models, though rudimentarily simple, of the development process and its probabilities must be considered before statements can be made on the efficiency of one variety of engineering process over another; in other words, caveat emptor. Specifically, the authors show how this happens in a realistic environment and then propose a better alternative configuration that is a hybrid between serial and concurrent product design. >

Measures of technology transfer effectiveness: key dimensions and differences in their use by sponsors, developers and adopters

Abstract: Federally funded R&D has been viewed as a key source of advanced technologies that, if successfully transferred to the private sector, could help rebuild America's global competitiveness. The growing perception that the nation is not getting an adequate return from its federal R&D budget is accompanied by a growing demand for more measurable technology transfer results. Yet measures of technology transfer effectiveness are neither well defined nor universally accepted. This exploratory study focused on defining and describing the measures or metrics used in the process of transferring government-funded technologies to private sector firms. The paper presents an initial conceptual framework and an exploratory, empirically based taxonomy of metrics used in technology transfer. This taxonomy and specific measures were used to help determine which technology transfer metrics were used by various players across the federal technology transfer process. Individuals who played roles as either sponsors, developers or adopters of federally funded technologies were surveyed on their roles and the measures of transfer effectiveness used in their work units. The data showed statistically significant differences in frequency of use of the transfer measures by the three roles. Secondly, a broad set of measures were used in varying degrees by all roles. Most importantly, all three roles used most measures rather infrequently. Recommendations to guide future research are included. Recommendations are also made for technology transfer practitioners. >

Multiproject strategy, design transfer, and project performance: a survey of automobile development projects in the US and Japan

Abstract: Large manufacturers usually need to manage multiple projects in order to leverage their financial and engineering resource investments on new technologies and designs. The purpose of this paper is to explore the relationship between different multiproject strategies and project performance measured by lead time and engineering hours. The multiproject strategy in this study focuses on different ways of transferring core technologies and designs from one project to another within the firm. First, this paper proposes a typology of different multiproject strategies, which categorizes new product development projects into four types: new design, rapid design transfer, sequential design transfer, and design modification. Second, using survey results on 103 different new product projects at 10 automobile firms in Japan and the US, this study concludes that projects using the rapid design transfer strategy are the most efficient in terms of engineering hours. Only through rapid design transfer can a preceding design be transferred from a base project to a new project with effective task sharing among engineers and mutual adjustments between the two projects. This paper also discusses organizational requirements for managing rapid design transfer projects. Neither a pure project-team approach nor a functional approach seem appropriate for the management of concurrent multiple projects.

Top management support of R&D projects: a strategic leadership perspective

Abstract: A study of top management support of 213 R&D projects in 21 major firms revealed significant relationships between independent informants' perceptions of top management support, project characteristics, and project performance. Testing a model based on a strategic leadership perspective, top management support was found to be directed at certain types of projects, i.e., those that were expected to make greater contributions to business goals, represented larger investments, were seeking new products and process versus incremental improvements, and had originated from business sources as opposed to R&D. In addition, even after controlling for these project characteristics, projects with top management support were less likely to be terminated. In contrast, after controlling for project characteristics, completed projects with top management support were not judged to make greater contributions to the firm's business goals suggesting top management may not be able to pick winners. Findings are discussed in terms of future research and implications for top management leadership within R&D. >

The influence of planning an implementation success of advanced manufacturing technologies

Abstract: The relationship between planning and implementation of advanced manufacturing technologies (AMT), and the ability to obtain a competitive edge is generally assumed but not empirically verified. Using a questionnaire approach, this study surveyed a sample of 222 manufacturing firms who have implemented AMT's to address these issues. The results show that the quality of the planning system, measured in terms of scope/comprehensiveness and adaptiveness, had significant moderating influences on the relationship between the perceived need for strategic change and implementation success. That is, all other things being equal, planning systems helped firms to better focus on their performance-deficiency areas and exploit AMT's capabilities, thereby enabling superior performance and greater satisfaction with their AMT systems. Awareness of the capabilities/suitability of AMT's to the firm's operating contest (technology-push), and recognition of performance shortcomings (need-pull) also have significant direct influences on the two outcome variables. >

Innovation from differentiation: pollution control departments and innovation in the printed circuit industry

Abstract: Theory predicts that managers will create specialized boundary-spanning departments to insulate a firm from changing surrounding conditions. Theory also predicts such insulating structures will inhibit adaptation. The author has found that in response to changing water-pollution regulation, top managers indeed created specialized pollution-control departments to insulate the existing process, but some of these departments acted not as insulators but as conduits for information and thereby helped both to improve the efficiency of the production process and to reduce pollution. The special role of these departments allowed unique access to and perspective on information from inside and outside the organization and gave them an incentive to use this information to improve core processes. Thus, this research suggests that pollution-control departments may belong to a class of boundary spanners that represent a special case for organizational design. >

FMS planning decisions, operating flexibilities, and system performance

Abstract: Flexibility of manufacturing systems (FMS) has been conventionally associated with their ability to manufacture a variety of part types. However, flexible automation has introduced several process-oriented dimensions to flexibility. The impact of these dimensions on system performance needs to be better understood in order to evaluate the desirability of flexible automation for any company. This paper considers the role of system planning in determining operating flexibility and system performance. The authors argue that while the overall flexibility of any system is constrained by decisions made at the system design stage, the realized short-term flexibility depends significantly also upon planning decisions made during preproduction setup. Different planning objectives lead to different system configurations, and simultaneously yield varying levels of process-oriented flexibility. The authors also give a scheme for classifying different types of flexibilities, and use this scheme to present an illustrative comparison of conventional and flexible manufacturing methods for the two extremes of high volume/low variety and low volume/high variety manufacture. The authors observe that the inverse relationship that exists between flexibility and productivity for conventional manufacturing systems does not necessarily carry over to FMSs. >

Innovation strategy and the R&D-marketing interface in Japanese firms: a contingency perspective

Abstract: This study proposes a contingency model suggesting that a firm's strategic position will affect cross-functional involvement and information sharing between R&D and marketing departments in five major new product development stages, as well as the quality of R&D-marketing relations and organizational structure. To test the model, the authors surveyed 274 R&D managers and 264 marketing managers in 315 Japanese high-technology firms. The results indicate that, contrary to anecdotal suppositions of Japanese firm homogeneity, Japanese firms differ among themselves and among the strategic types in several important ways. The results also suggest that the level of R&D-marketing integration should be contingent on new product development strategy, making uniform promotion of cross-functional team integration questionable. Despite the differences in innovation strategy pursued by aggressive new product developers versus nonaggressive new product developers, all three strategic types rank the stages of innovation in a similar manner.

Technology development and integration: an empirical study of the interaction between applied science and product development

Abstract: The authors report on the results of an empirical study of the development of products based on novel technologies. Their observations are based on field investigations of recent projects performed by all leading mainframe computer producers. All projects focused on the development of advanced technologies for a specific product application, and probed deeply into its science base. The results indicate striking differences in development lead time and R&D productivity between different groups of firms. The authors relate the development performance of the projects to managerial and organizational structures and processes for the integration of new technology. >

Resource constrained scheduling of hierarchically structured design activity networks

Abstract: In this paper, a new approach to the problem of scheduling of design activities with precedence and multiple resource constraints is proposed. In addition to the AND type relationship, OR and EXCLUSIVE OR relationships may also exist between design activities. In order to handle these logical relationships, IDEF3 is used for network representation. A large network of design activities can be arranged in different levels of abstraction. A procedure is proposed to transform an IDEF3 model into a set of alternative precedence networks. In the networks selected, the activities that are resource independent are grouped with a partitioning procedure. In order to increase the efficiency of the search for the best schedule, a procedure based on the Christofides et al. (1987) reduction procedure is introduced to determine a lower bound on the completion time of the hierarchically structured design activity network. >

Efficiency measurement of alternative machine component grouping solutions via data envelopment analysis

Abstract: Much current research in the area of cellular manufacturing (CM) has focused on the development of cell formation procedures. Many of these procedures yield alternative solutions corresponding to various numbers of clusters or various threshold values. This paper illustrates how data envelopment analysis (DEA) can be used to measure the efficiency of alternative machine component grouping solutions given the existence of multiple inputs and/or outputs in the transformation process with no a priori weightings. An interesting managerial implication that emerged from this study was that hybrid or partial cellular layouts can, in fact, be efficient. Accordingly, pilot cells can be implemented to gain experience with cellular manufacturing and then incrementally implemented plant wide. >

Impact of ABC information on product mix and costing decisions

Abstract: The primary aim of this paper is to develop and demonstrate a mixed integer programming model that utilizes activity-based cost information to determine optimal product mix and product cost in a multi-product manufacturing environment. The model permits interesting insights to be gained into the evaluation of the marginal cost of products and marginal worth of resources for decision making involving product mix, product costing and capacity expansion/contraction. It also addresses the issue of how to determine the cost of idle capacity and attribute it to the different products. An example is presented to demonstrate the findings of the model, which the authors then compare with analogous results from a traditional linear programming-based approach. Extensions to the mixed integer programming model are also provided. >

Engineering's interactions with marketing groups in an engineering-driven organization

Abstract: It is widely acknowledged that engineering personnel should work with marketing and sales personnel to increase the chances of market acceptance of new product ideas. While many studies have shown that products are more likely to succeed when this integration occurs, there has been little observation of the actual interactions and the underlying sources of communication difficulties. This paper, based on nine months of participant observation in a single firm in the computer industry, presents engineering objections to information from marketing groups and then discusses the complaints marketing people have about engineering. The author argues that for complex systems products in technology-driven environments, there may not be a dyadic interaction between marketing and engineering but rather many conflicting requirements coming from marketing groups representing different customer groups. In such situations, decisions concerning the overall system architecture may be among the most critical strategic decisions. >

User involvement for effective customization: an empirical study on voice networks

Abstract: This paper addresses the role of customer involvement in effective customization of projects, products, or services. Relationships between variables such as project effectiveness, user involvement, supplier efficacy for service to the client, and project complexity are studied. The conditions necessitating involvement are also explored. The case of voice network customization is examined. A questionnaire is designed to measure the variables of the study. Factor analysis gives two factors of project complexity: project size/cost; and user inexperience. Findings provide evidence that user involvement is positively related to network project effectiveness. Supplier efficacy for service is positively and significantly related to user involvement and project effectiveness. The implication is that suppliers with a service-orientation can motivate user involvement and achieve client satisfaction, In addition, user inexperience is positively related to user involvement showing the importance of learning as a motivator for customer participation. >

The effect of management and social interaction on the intra-firm diffusion of electronic mail systems

Abstract: Can management affect the rate by which organizational members adopt a new computer based communication medium? The question is addressed by comparing the rate by which employees start to use an electronic mail system (EMS) and case descriptions across four departments during a five year period in a large Swedish manufacturing company. Data on EMS use are fitted to a model describing the spread of use as a function of social and management influence. Data are consistent with the hypothesis that the rate of new users of EMS can be influenced by both department-level management and peers. Faster growth in use occurred when department-level management exercised implementation efforts. The rate of growth increased significantly when a local information center (IC) was established. The more resources the local IC was supplied with the higher the rate of growth in EMS use. Management of the implementation process may be especially preferred when introducing end-use network technologies in organizations due to interdependent demand among users.

Telecommuting: problems associated with communications technologies and their capabilities

Abstract: Recent advances in information and communications technologies have permitted new flexibility in work arrangements. The number of people who either work from their home or take work home from their job is increasing. This evolution has led to a different set of needs at the person's residence than is traditionally required by the residential market. This paper presents an empirical study, based on 375 responses, to clarify: (1) the small business and residential market communications needs and problems; (2) the new communications technologies potential to fill those modern needs; and (3) the impact of the communications needs and problems on the telecommuters effectiveness. The implication of the findings from this study for the technologies providers, managers, university community, and researchers are discussed in detail.

The use of visual modeling in designing a manufacturing process for advanced composite structures

Abstract: Visual modeling is the depiction of abstractions of reality using visual representation of the phenomena being studied. These visual representations include graphs, maps, flowcharts, and pictures. Iconic programming includes the construction and implementation of models using this representation. The result can be readily exercised and assessed by experts, thereby helping to ensure the accuracy of the model and its usefulness in supporting the relevant decision process. This paper discusses visual modeling and demonstrates its usefulness in a case study of the design of a manufacturing process involving composite materials and associated manufacturing technologies. >

A lattice claims model for capital budgeting

Abstract: Techniques of contingent claims analysis (CCA), extend current capital budgeting practices in two specific ways. First, by explicitly accounting for project uncertainty and second, by quantifying the flexibility value afforded due to the presence of real options. When applied appropriately, CCA techniques can provide a powerful and robust valuation approach and are particularly useful in providing insight to key strategic factors that affect project value. These advantages, however, come at some expense as most applications of CCA to project valuation result in complex partial differential equations which cannot be solved for simple analytic formulas. This, combined with the intricate mathematical structure of these methods often make it difficult for an intuitive grasping and may result in implementation problems. The purpose of this article is to provide a prefatory perspective on the use of CCA techniques as applied to engineering, production, mining, and manufacturing projects. To that end, by using efficient numerical techniques this article formulates a simple and unified CCA framework for valuing a large class of projects that contain real options. The approach is straightforward, readily implementable, and computationally efficient. The framework presented in this paper also provides an important introduction to the use of CCA methods and the quantification of flexibility value in the management of operations. >

Training in CAD: an exploratory study of methods and benefits

Abstract: An important decision in the implementation of CAD is the type of training program which the users of the system will receive. This study, conducted in the electronics/telecommunications industry, explores some of the advantages and disadvantages associated with the use of formal (classroom-based) and informal training programs for CAD systems. The findings suggest that informal CAD training methods tend to promote the restructuring of work, but tend to result in less managerial familiarity with the CAD technology, which has been shown to be detrimental. Formal training programs, on the other hand, were not seen to result in work restructuring, but did provide management directed CAD training. Satisfaction with the CAD system, quality benefits, and dissatisfaction with vendor technical support were experienced by all firms, regardless of the training method employed. A number of areas for future research are presented.

Organizational visions for technology assimilation: the strategic roads to knowledge-based systems success

Abstract: Despite the dramatically increased application of knowledge-based systems (KBS) technology, most of the enormous potential to leverage expert knowledge remains unrealized The vast majority of KBS initiatives in industry and commerce have ended with unsatisfactory results These failures can be primarily attributed to strategic mismanagement rather than technological shortcomings Inspirational leadership and a needs-driven organizational vision are crucial for the effective assimilation of a new or emerging technology KBS are no exception A roads metaphor is identified as a basis for crafting and communicating such an organizational vision Three alternative approaches for achieving a strategic impact with a technology are identified and described: the user-driven low road; the technostructure-driven high road; and the team-based road network The relative merits of these strategic roads, and their suitability to different organizational and knowledge structures are considered using a case-based methodology Based on their research of the KBS technology assimilation processes at DuPont, Digital Equipment, and Xerox, the authors offer management advice to practitioners and recommend future areas for study >

A framework for analyzing the information monitoring and decision support system investment tradeoff dilemma: an application to crisis management

Abstract: The simplest form of a system consists of an input, a process which adds value to the input, and an output containing actionable information. The value of the output from a system is a function of not only the quality of the input but also the appropriateness, validity, and reliability of the transforming process. For certain classes of decisions such as those that correspond to crisis management, even the most simplistic version of a system presents problems for system developers and hence decision makers. Unlike in highly structured decision settings where precise models exist and high quality data is readily available, decision making in crisis settings involves ill-structured tasks which pose considerable problems for those responsible for the investment of a limited information resource budget. This paper presents a framework for analyzing the information monitoring decision support system tradeoff dilemma that occurs in crisis management settings, it concludes with several insights and recommendations for future research.

Technology adoption, product design, and process change: a case study in the machine tool industry

Abstract: The experience of the machine tool industry suggests that many manufacturing organizations are reexamining their manufacturing processes and technologies in response both to the need to gain flexibility and efficiency in their operations and to a rising awareness of resource costs and environmental concerns. The adoption of new technologies, especially technologies which reduce material requirements and waste, will require organizations to rethink how they design and manufacture their products. Changes in product and process design will affect the technologies and operations of numerous organizations along the production supply chain. Through a case study of the machine tool industry, this paper explores the impacts of the adoption of forming technology instead of conventional cutting technology on the production of selected metal parts. This paper is organized in three parts. In the first part, the costs, technical advantages, and environmental compatibility of cutting and forming technologies are profiled. Forming technology is shown to provide substantial savings in raw material, energy and waste disposal over cutting technology for a class of high-volume metal parts. The second part explores the changes in part and process design which occur when forming technology is adopted for parts which have traditionally been made by cutting. The costs of these design changes must be balanced against the environmental savings. The third part explores the extent to which changes due to the adoption of new forming technology ripple along the production supply chain to suppliers and other upstream organizations. >