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The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

This chapter of the book aims to achieve sustainability and productivity in light of the interaction between managers and engineers in a lean and agile supply chain management system in today’s organizations. The main innovation of this chapter is the use of the balanced scorecard (BSC) model and fuzzy analysis network process (FANP) to create a suitable platform for the realization of this interaction between managers and engineers and to identify exactly which expert system is ideal for the main purpose. Indeed, this chapter introduces its readers to the application of strategic management tools such as the BSC accompanied by FANP in the elements of supply chain management where data analysis of lean and agile networks in supply chain management can create a competitive advantage in the organization.

The key performance indicators (KPIs) are frequently used in organizations, and they help to transmit the strategy at all levels of the organization. However, the implementation of these indicators in small- and medium-sized companies remains a challenge. Many studies reveal two challenges faced by these firms, the lack of knowledge about the KPIs and the lack of alignment of these with the business strategy. For this reason, this chapter investigated the current level of knowledge about KPIs in managers of small and medium enterprises in the wood and timber sector in Peru.

The level of knowledge was measured using the framework of Bloom's Taxonomy in 21 firms. The use and importance that managers assign to performance indicators were evaluated, in order to identify gaps that exist between the strategy and its use.

The results of a survey study show a high degree of variability in the knowledge of KPI-related concepts as well as an average low level of usage. The importance attributed to KPIs was seen as a necessary but not sufficient condition for attaining higher levels of KPI usage.

Strategy Question: How can we enhance our reputation with our customers in the most effective and efficient manner?

Summary: In the structure and flow of this book, various tools have already dealt with some big issues that naturally impact channel partners. Product/service performance and Price/Cost are among two of the biggest areas that have already been addressed. So, we ask ourselves what additional actions can we take to become a better channel partner. These relationships are extremely important. At this point we refer back to the material on process improvement techniques and now suggest turning these toward customer facing process issues. The Pareto Chart (the 80%/20% rule) is discussed in terms of setting a method to measure and gather data, target setting, problem solving against that target, and monitoring improvement progress. This provides guidance and suggestions to focus process improvement tools toward the customer facing part of the organization. Suggestions and approaches are discussed. In cases where the company does not have a metric for the item at issue, a simple quality tool is introduced to provide timely definition of the issue.

Global businesses base their sourcing operations and manufacturing decisions primarily on financial principles and metrics. What is often disregarded is the strategic value of domestic locations and contextual tacit knowledge. However, recent empirical work on knowledge flows shows that proximity is crucial. The risk of losing knowledge and important competencies developed through generations within companies and value chains needs to be considered when developing a global sourcing strategy. This chapter sheds light on how global shift-backs, through backshoring are seen to affect organizations that are located in a high-cost country. Based on interviews with managers and key personnel within a specific industry, we explore how companies preserve innovative capabilities when considering closing down (captive) offshore centers or when embarking on a backshoring strategy. The implications derived from the case offers valuable insights into how organizational capabilities could be restored when companies bring manufacturing back.

The world has witnessed three major individual revolutions until now. We are in the fourth industrial revolution, and there are technological breakthroughs that have not been seen before. Responding fast to changing consumer expectations in a competitive climate brought on by globalization has become a global reality, requiring enterprises to alter their manufacturing systems. The incorporation of machines that can interact and make decisions into production has altered the manufacturing processes. The application of the Industry 4.0 revolution to manufacturing processes has paved the way for the development of smart factories. Production may be made 24 hours a day in these factories where productivity grows with applications such as the internet of things (IoT), cyber-physical systems, augmented reality and artificial intelligence. All applications utilized in smart factories boost productivity and reduce costs and human error rates. Countries should undergo change in order to adapt to the competitive climate established by Industry 4.0, in which the entire world lives. Many industrialized countries have taken significant strides in this direction, including this process into their national policies. Turkey's ability to adapt to Industry 4.0 technologies in a digitalized competitive environment, as well as swiftly grow smart factory applications in altering production processes, is critical to its global economic standing.