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This paper shows that for a large class of single and multi‐factor term structure models, including the affine class, the market price of risk is directly related to the parameters of the stochastic processes of the underlying factors of the economy. It is shown that the market price of risk is proportional to the limit of the volatility of zero coupon bond returns. This means that the market price of risk is not entirely arbitrary. Not only it must be consistent with no arbitrage conditions, also it must be consistent with the parameters of stochastic processes of the factors that describe the economy. If the market price of risk is not correctly specified, then it could lead to profit opportunities of the type discussed in Backus et al (1996). Another consequence of our result is that in empirical tests of interest rate processes, the market price of risk should not be specified exogenously since its value is a function of the parameters of the model. We extend our result to forward processes. The market price of risk is shown to be a function of the volatility of the forward rate processes.

In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this chapter, we review criticisms of traditional PM practices that have been mentioned by journalists and practitioners and we consider the solutions that they have presented for addressing these concerns. We then consider these problems and solutions within the context of extant scholarly research and identify (a) what organizations should do going forward to improve PM practices (i.e., focus on feedback processes, ensure accountability throughout the PM system, and align the PM system with organizational strategy) and (b) what scholars should focus research attention on (i.e., technology, strategic alignment, and peer-to-peer accountability) in order to reduce the science-practice gap in this domain.

Main issue in management and strategy is corporate performance. Managers seek effective and strategic way to improve their performance. Authorization, which includes reputational and strategic indicators, is one of these ways. The applying authorization and using this authorization are decision-making process for managers. These processes have potential to make considerable effect on corporate performance. As a considerable result of this research that need of resource dependency type certified aircraft technicians in Anadolu University are decreased owing to this research and, also the purpose of this study is that technicians have got opportunity to creating own human resource in view of both sustainability, and competition in training field.

In this study, both specified and organizational-tailored flowchart as the problem solving techniques in decision-making process of maintenance training organization have been developed, compiled after taking the opinions of experts, for the effective implementation of type rating training, following approval, that cover the types of fleet at Anadolu University. This flowchart may guide to the relevant aircraft maintenance training organizations in their type trainings implementation process.

Human factor is both vital and necessary element to achieve high corporate performance. By following the flow chart, the implementation process is shortened by eliminating the difficulties in complying with the depth and complexity of the required regulation.

The development of the necessary skills and competencies of the workforce is one of the critical points for the creation, preservation and improvement of corporate value. This research has been carried out with the aim of effective utilization of institutional resources, development of personnel and hence corporate value creation. Anadolu University, which is aware of the importance of core competence, is trying to make it one of its strengths institutionally. The Anadolu University Faculty of Aeronautics and Astronautics, as an organization that has completed the necessary steps to become authorized to give type rating training, may guide other aviation organizations using the organization-specified tailored flow chart developed with the help of expert opinion.

Face the process yield rate improvements of motherboard, although general enterprises finish deployment goal of each functions by overall quality managements, through quality improvement methods, industry engineering methods, plan‐do‐check‐act (PDCA) methods and other improvement solutions, but it is only can be improved partially and unable to enhance the yield rate of product to the target. It only can takes one step ahead to enhance the process yield rate of motherboard with six sigma (6 σ) overall DMAIC process and tactics. This research aimed to use six sigma quality improvement tactics by DMAIC systematic procedure and tactics, and find the key factors that effect to the process yield rate of surface mount technology. It also identified the keys input and process and output index to satisfy customer requirements and internal process index. The results showed that the major effective factors by fishbone and process failure modes and effects analysis (PFMEA). If the index of input and output that can be quantified, the optimum parameter can be found through design of experiment to ensure that the process is stable. If the factor of input and output that cannot be quantified, we found out the effective countermeasure by Mind_Mapping, make sure whole processes can be controlled stably, to reach the high product quality and enhance the customer satisfaction.

The purpose of this paper is to consider a discrete‐time, Markov, regime‐switching, affine term‐structure model for valuing bonds and other interest rate securities. The proposed model incorporates the impact of structural changes in (macro)‐economic conditions on interest‐rate dynamics. The market in the proposed model is, in general, incomplete. A modified version of the Esscher transform, namely, a double Esscher transform, is used to specify a price kernel so that both market and economic risks are taken into account.

The market in the proposed model is, in general, incomplete. A modified version of the Esscher transform, namely, a double Esscher transform, is used to specify a price kernel so that both market and economic risks are taken into account.

The authors derive a simple way to give exponential affine forms of bond prices using backward induction. The authors also consider a continuous‐time extension of the model and derive exponential affine forms of bond prices using the concept of stochastic flows.

The methods and results presented in the paper are new.

Interest rate risk, i.e. the risk of changes in the interest rate term structure, is of high relevance in insurers' risk management. Due to large capital investments in interest rate sensitive assets such as bonds, interest rate risk plays a considerable role for deriving the solvency capital requirement (SCR) in the context of Solvency II. This paper seeks to address these issues.

In addition to the Solvency II standard model, the author applies the model of Gatzert and Martin for introducing a partial internal model for the market risk of bond exposures. After introducing calibration methods for short rate models, the author quantifies interest rate and credit risk for corporate and government bonds and demonstrates that the type of process can have a considerable impact despite comparable underlying input data.

The results show that, in general, the SCR for interest rate risk derived from the standard model of Solvency II tends to the SCR achieved by the short rate model from Vasicek, while the application of the Cox, Ingersoll, and Ross model leads to a lower SCR. For low‐rated bonds, the internal models approximate each other and, moreover, show a considerable underestimation of credit risk in the Solvency II model.

The aim of this paper is to assess model risk with focus on bonds in the market risk module of Solvency II regarding the underlying interest rate process and input parameters.

Much of the research literature in job shop scheduling deals with pure job shop environments. However, currently most processes involve a hybrid of both the job shop and a flow shop with a combination of flexible and conventional machine tools. Presents a study of such a job shop under varying conditions and performance criteria. Argues that for scheduling in this environment, certain combinations of scheduling rules should be utilized under different arrival rates and for different job types. A simulation model is developed using a hypothetical hybrid job shop to study the performance of rule combinations with variations in arrival rates and processing times. The performance criteria used are flowtime as a measure of work‐in‐process inventory, tardiness for JIT, and throughput for completed items inventory. It was found that rule combination performance varied with the performance criteria. Furthermore, it was found that the combinations were sensitive to arrival rates and processing times. Concludes, from the insights gained in the study, that the rule combination to be implemented should depend on the performance objective and the arrival rate/processing time condition of the hybrid job shop.

This study presents a framework to estimate throughput and cost of additive manufacturing (AM) as related to process parameters, material thermodynamic properties and machine specifications. Taking a 3D model of the part design as input, the model uses a parametrization of the rate-limiting physics of the AM build process – herein focusing on laser powder bed fusion (LPBF) and scaling of LPBF melt pool geometry – to estimate part- and material-specific build time. From this estimate, per-part cost is calculated using a quantity-dependent activity-based production model.

Analysis tools that assess how design variables and process parameters influence production cost increase our understanding of the economics of AM, thereby supporting its practical adoption. To this aim, our framework produces a representative scaling among process parameters, build rate and production cost.

For exemplary alloys and LPBF system specifications, predictions reveal the underlying tradeoff between production cost and machine capability, and look beyond the capability of currently commercially available equipment. As a proxy for build quality, the number of times each point in the build is re-melted is derived analytically as a function of process parameters, showcasing the tradeoff between print quality due to increased melting cycles, and throughput.

Typical cost models for AM only assess single operating points and are not coupled to models of the representative rate-limiting process physics. The present analysis of LPBF elucidates this important coupling, revealing tradeoffs between equipment capability and production cost, and looking beyond the limits of current commercially available equipment.

The assessment of COBIT process maturity levels is fraught with a number of problems regarding the objectivity of the assessment results. Unlike ISO/IEC 15504, COBIT does not define an assessment model. The purpose of this paper is to align the behavioural aspects of the six COBIT process attributes with achievement results defined for the nine process attributes associated with the ISO/IEC 15504‐2 measurement scale. The authors believe that this alignment permits a translation of the ISO/IEC 15504 assessment data into an objective COBIT process maturity rating.

The tables presented in the paper identify the COBIT process attributes, the applicable ISO/IEC 15504 process attribute achievement results and the aggregated rating that pertains to the selected achievement results. A final table lists the derived COBIT process maturity level in terms of the ratings for the ISO/IEC 15504 process attribute achievement results for an assessed process.

The objectivity of the aggregated result (COBIT process maturity level) appeals strongly to end‐users of this measurement result, particularly where contractual obligations must be satisfied.

The method is useful where measurement rigour must be demonstrated in the computation of the COBIT process maturity levels.

This assessment and computational method was developed and trialled in the second half of 2010 in the context of the assessment of 13 information technology (IT) service management processes at two different customer sites. The material is of special value to service managers in companies that have outsourced IT service management processes to external IT service providers.

This article surveys available research on the contingent‐claims approach to risky debt valuation. The author describes both the structural and reduced form versions of contingent claims models and summarizes both the theoretical and empirical research in this area. Relative to the progress made in the theory of risky debt valuation, empirical validation of these models lags far behind. This survey highlights the increasing gap between the theoretical valuation and the empirical understanding of risky debt.