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1 – 6 of 6Oya I. Tukel, Walter O. Rom and Tibor Kremic
The purpose of this paper is to analyze the impact of learning in a project‐driven organization and demonstrate analytically how the learning, which takes place during the…
Abstract
Purpose
The purpose of this paper is to analyze the impact of learning in a project‐driven organization and demonstrate analytically how the learning, which takes place during the execution of successive projects, and the forgetting that takes place during the dormant time between the project executions, can impact performance and productivity in the future.
Design/methodology/approach
A learn‐forget model was developed using the learning curve concept prevalent in many manufacturing processes. The model assumes that learning occurs while project tasks are being performed and forgetting takes place during dormant times between the successive implementations. The log‐linear model was adapted, with both learning and forgetting rates being a function of the doubling or tripling of output. Forgetting is inhibited through the use of knowledge transfer tools such as use of close‐out documents or content management platforms. The model is applied to a simulated project environment where a number of projects are executed sequentially, and the results are evaluated using the reduction in total duration and return on investment.
Findings
Computational results demonstrate that the learning and forgetting rates and level of project close‐out effort impact project performance, in the form of reduction in duration, much more significantly compared to the impact of the length of dormant times between the project initiations. Furthermore, even in a slow learning environment, using close‐out reports as a knowledge transfer tool, managers can achieve more than a 40 percent reduction in duration after several successive implementations.
Research limitations/implications
Although the theoretical development is applicable to a general organizational setting, the empirical testing of the model is done in project‐driven organizations where projects are implemented on an ongoing basis.
Practical implications
Managers can significantly benefit from the findings of this study. It is shown that the accumulated learning which represents knowledge generated during the implementation of a project, if transferred successfully, improves productivity and enables faster implementation. In a project‐driven organization an almost 80 percent reduction in total duration is achievable with the use of close‐out documents. This result promotes the importance of the learning process and managers should enable their team members to learn as much as they can while implementing a task and to document it methodically.
Originality/value
This study constitutes an initial effort to illustrate quantitatively how the level of learning and forgetting impact performance in a project‐driven organization. This study is also original in that it methodically demonstrates the importance of spending time during the phase‐out, documenting the project artifacts, that enables knowledge transfer, and thus improves performance.
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Oya I. Tukel and Ashutosh Dixit
The applicability of the customer life time value (CLV) concept goes beyond consumer markets. Specifically, the purpose of this paper is to show how a make‐to‐order manufacturing…
Abstract
Purpose
The applicability of the customer life time value (CLV) concept goes beyond consumer markets. Specifically, the purpose of this paper is to show how a make‐to‐order manufacturing company in a supply chain can set customer‐focus manufacturing strategies using CLV.
Design/methodology/approach
Data from an integrated steel plant is used to calculate the life time value of customers based on the past value, the potential value, and their loyalty. The past value of a customer is based on the historical data and the future value of a customer is then forecasted. The loyalty index of a customer is determined by survey results.
Findings
In general, it was found that the CLV for the most valuable customers increases exponentially and the top 28 percent of customers constitute 80 percent of the total value of all customers.
Research limitations/implications
This study focuses on make‐to‐order manufacturing organizations and the three strategies suggested for business process improvement need to be re‐evaluated for make‐to‐stock or mass production.
Practical implications
Based on these results, the authors suggest three strategies for business process improvement and revenue growth for the plant.
Originality/value
This study constitutes an initial effort to develop a CLV model for make‐to‐order manufacturing organizations for improving plant performance. The model links customers with not only the front office functions but also with ERP systems. Organizations that are part of value chains can benefit significantly from CLV applications.
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Bradford Eichhorn and Oya Tukel
There are differing views and results in the literature regarding whether the user’s participation has a positive or negative impact, if any, on the success of an information…
Abstract
Purpose
There are differing views and results in the literature regarding whether the user’s participation has a positive or negative impact, if any, on the success of an information system (IS) project. The purpose of this paper is to develop a comprehensive model with four main hypotheses to test the relationships between seven constructs using survey data conducted in the USA.
Design/methodology/approach
The authors develop a structural equation model (SEM) with four constructs defining the activities the user participates in and three constructs defining user satisfaction as a measure of project success. As such, the proposed SEM is the most comprehensive among the models offered in the literature to date, and includes, for the first time, a presentation requirement construct as a specific system requirement for possible user participation.
Findings
The authors find that a business user’s participation in functional requirements benefits project outcome, whereas business users should not participate in gathering presentation requirements unless they are experienced middle managers.
Research limitations/implications
This study surveyed many industries across the USA and provided a solid statistical base for analysis. Future research should consider exploring IS projects in other countries since various cultures can differ in how they approach to such projects. Additionally, industries are known to have dissimilar needs; therefore, a study exploring specific industries would add to the available research.
Practical implications
The authors find that when the general business user participates in certain activities that relate to presentation of the system, his/her involvement negatively impacts the project success. However, if that business user is a middle manager, he/she has a positive impact on the project success. Similarly, when the business user participates in managing the projects, that involvement negatively impacts the project outcome (although the amount of negative impact is relatively small). These results should have an influence on the way the IS project managers allocate business resources to activities, and their decisions regarding whether and where the business users participate.
Social implications
The authors expect higher levels of business user satisfaction on IS projects if they are allocated to a limited subset of project activities that has a positive impact on project outcomes.
Originality/value
The authors believe these findings contribute to this research domain considerably since they are based on a large sample size on a new comprehensive model of business users that can be generalized across industries. The separation of business requirements into functional and presentation requirements has suggested that there are differing impacts to the project depending on the type of business user involved.
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Oya Icmeli Tukel and Walter O. Rom
In this article, we report on an empirical study conducted in the USA to determine the performance measures project managers commonly use to evaluate the success of their…
Abstract
In this article, we report on an empirical study conducted in the USA to determine the performance measures project managers commonly use to evaluate the success of their projects. Specifically, we identify project managers’ orientations toward using internal and/or customer driven measures of performance. We also investigate the priority given to these measures at different stages of a project by identifying the primary objective at those stages. In general we find that project managers’ primary success measure is quality and their most important objective is meeting customer needs. The priority given to this objective does not change during various stages of a project regardless of the project type and industry classification. The choice of performance measures, however, is influenced by project type and industry classification.
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Tibor Kremic, Oya Icmeli Tukel and Walter O. Rom
The purpose of this study is twofold. The first is to provide a structured review of the vast amount of outsourcing literature that has accumulated in the past two decades using a…
Abstract
Purpose
The purpose of this study is twofold. The first is to provide a structured review of the vast amount of outsourcing literature that has accumulated in the past two decades using a decision support framework. The second purpose is to statistically analyze the contents of the studies to identify commonalities as well as gaps, in order to suggest directions for future research.
Design/methodology/approach
The contents of more than 200 publications are analyzed using a variety of approaches. A decision support framework is used to first classify whether the studies address outsourcing benefits, risks, motivations or factors. Next, each classification is further described by the type of benefits, risks, etc. Additional relevant contents such as type of organization, and the location of the outsourcing practice are also considered. Multivariate analyses consisting of cross tabulations, chi‐square testing and cluster analysis are used for categorizing the studies with the aim of identifying relationships among the studies which are not apparent when they are considered individually.
Findings
A number of trends and relationships are identified. For example, most studies focus on US for‐profit organizations and are typically theoretical, discussing benefits, risks and motivators. On the other hand, the research on outsourcing practices of non‐profit organizations, where objectives for outsourcing are typically politically driven, is found to be scarce. Furthermore, the results of the cluster analysis indicate that the studies can be grouped into six clusters where the five small clusters are characterized by strong relationships with a few variables while the large cluster is characterized by variables that are not addressed in the studies.
Practical implications
Outsourcing has become commonplace in today's businesses. In addition to outsourcing in profit seeking organizations, there is considerable outsourcing effort in governmental and non‐profit organizations also. It is not easy for managers who are exploring outsourcing opportunities for the very first time and academicians who want to build upon existing studies to search the literature to find what they are looking for. This study addresses this difficulty by providing different classifications of the literature based on a variety of research criteria.
Originality/value
This study is a first attempt to organize the outsourcing literature using statistical as well as decision support tools. Using cluster analysis and discriminant analysis to explore the relationships among the contents of the studies is a new approach.
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Hadi Shirouyehzad, Elham Kashian and Saeed Emadi
The purpose of this paper is to investigate the benefit of critical success factors (CSFs) clustering in different phases of make-to-order (MTO) projects and develop standards for…
Abstract
Purpose
The purpose of this paper is to investigate the benefit of critical success factors (CSFs) clustering in different phases of make-to-order (MTO) projects and develop standards for management.
Design/methodology/approach
This study is based on a questionnaire survey. First of all, collecting data by structured interviews, relying on a questionnaire and second from leader contractors who are active in the engineering and steel industry (in Iran). So, the requirements and objective of the research are presented to the top management of MTO projects to gain their support in data collection. Then 20 CSFs were identified by the literature review so a questionnaire survey was prepared for the CSFs assessment and interview with the experts. Finally analyzing the importance and performance of CSFs in project phases and cluster them in different project phases with self-organizing map as one of the artificial neural network (ANN) approaches due to high predictive accuracy. Review the research result with the top management of MTO project and examine the results obtained from neural networks and validation indices.
Findings
Cluster analysis shows that the implementation phase is the most important stage in MTO organizations and the other phases like feasibility and start-up, design and planning, delivery and end-phase should be also considered as effective phases in determining the level of organization performance. Different industries with additional data at different periodic times will verify the result. Furthermore, testing the other ANN model will improve risk analysis and could shift this classification approach to a regression type.
Research limitations/implications
The main limitation of the research is related to the sample. Research findings are limited to the time of data collection so validity is limited to the mentioned time. Different industries with additional data will verify the result. Furthermore, testing different ANN models such as K-MEANS, non-negative matrix factorization (NMF) analyses will improve risk analysis and could meet different classification results to find gaps.
Practical implications
In this paper, CSF and project phase dimensions are viewed together which is necessary to meet better results for simplifying social and economic benefits. Merge the new findings and latest technologies could prepare the best results and enable managers to create a better framework or implement key factors for minimizing waste.
Originality/value
This paper moves the definition of MTO organizations beyond measuring cost, complexity and financial variables by clustering CSFs in different phases of projects. So, the results enable managers to use this concept in their daily production to minimize waste and could be implemented to efficiently choose factors.
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