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Emphasizing the importance of product cost deviation; the purpose of this paper is to contribute to the new product development (NPD) literature and research on decision making by discussing: How are decisions related to product cost deviations made during a product development project?

An in-depth single case study approach studying the decision-making process of Volvo Cars Cooperation during a car development project is applied.

The paper suggests that factors influencing how decisions related to cost deviations are made during a NPD are not limited to the classic trade-offs among time, cost and scope, but include managers’ complex cause-and-effect analysis under the influence of values, behaviors and norms. Furthermore, the context is not limited to NPD projects; rather the frame for the decisions and its influencers is at least as wide as the corporate context.

The common limitations of a single case study apply.

The study emphasizes the importance of clearly defined targets during a NPD project that need to well communicated, acknowledged and understood by all involved to serve as true business levers. A poor target is likely better than no target. Furthermore, lack of overview or responsibility for the success of the projects, increase the risk for sub-optimization and silo thinking.

The study is pioneering by highlighting the importance of and explaining the implications of decision making related to cost deviations during a NPD project.

The results of a survey of production managers in the UK, carried out in 1986, on behalf of the British Institute of Managers (BIM). It compares these results with those from an earlier, similar survey carried out in 1977. The evidence shows that changes in production management have not kept pace with changes in technology and competitive priorities, such as the importance of consistent quality. Recommendations include the closer involvement of production managers in determination of manufacturing policy, reorganisation to allow responsibility to be taken for quality, production control, and maintenance, increased training, and better liaison between production, marketing, and design functions.

The purpose of this paper is to explore the applicability of Pay-What-You-Want (PWYW) pricing multi-channel retailing. Specifically, the impact of PWYW endogenous price discrimination on consumers’ price fairness perception of and reactions to PWYW is investigated.

Three empirical studies with different product categories were conducted through lab experiments with student sample using scenario-based experimental approach.

Results indicate the viability of PWYW with lower suggested external reference price. The impact of PWYW endogenous price discrimination is dependent upon the magnitude of price deviation from regular market price and product category. Consumers’ negative perceptions of price differentiation interacted with their underlying beliefs about the retailer’s cost of products across different channels. PWYW acceptance can be fostered in multi-channel by communication of additional-value generated in offline selling.

The current research is possibly the first to explore PWYW viability in the multi-channel context by exploring the consumer’s price perception process and critical consumer reactions through a well-structured research framework.

The purpose of this paper is to apply the statistical tolerancing technique to analyze the dual responses of APFA arm height deviation with respect to next stage of disk assembly process and simultaneously optimize and allocate the required tolerance of the responses onto its components at minimum cost of manufacturing and the quality loss.

The relationships between the dual responses of APFA heights and the geometric dimensions and tolerances of APFA components, and orientation of the assembled part with respect to disk assembly were first defined. The effects of the APFA orientation, and the component tolerances on the distributions and variations of the responses were derived and investigated in terms of resultant product/process performance, quality loss, and the cost of assembly. The tolerance cost-based objective function is then formulated as the combined manufacturing/assembly cost and the quality loss. Direct search method was used to find the best feasible tolerance solutions satisfying the required product performance at minimum cost.

The constructed relationship or transfer functions of the dual responses were probabilistic depending on the orientation of part with respect to the next assembly process. The Monte Carlo simulation is empirically suitable for the computation of the conditional distributions of the responses against the first-order linear approximation of component variances. The proposed solution of tolerance control plan increases the product performances, C _pm , from 0.6 to be at least 1. The proposed tolerance allocation plans will reduce the amount of rework currently as high as 5 percent to at most 0.01 percent with minimally increased assembly cost.

This proposed methodology to design and allocate component tolerances is suitable and applicable to the APFA assembly process. The derived assembly functions of probabilistic type relating the responses to the process and component characteristics can represent the actual dynamic of assembled part better than a traditional single deterministic function developed under static concept. This presented methodology can be applied to other assembly cases where quality characteristic depends on the part dynamic.

This research simultaneously optimized the dual APFA height deviation responses with minimum cost of tolerance and quality loss using two different conditional distributions and transfer functions of the resultant deviations generated from dynamic of APFA with respect to disk.

The quality level setting problem determines the optimal process mean, standard deviation and specification limits of product/process characteristic to minimize the expected total cost associated with products. Traditionally, it is assumed that the product/process characteristic is normally distributed. However, this may not be true. This paper aims to explore the quality level setting problem when the probability distribution of the process characteristic deviates from normality.

Burr developed a density function that can represent a wide range of normal and non-normal distributions. This can be applied to investigate the effect of non-normality on the studies of statistical quality control, for example, designs of control charts and sampling plans. The quality level setting problem is examined by introducing Burr’s density function as the underlying probability distribution of product/process characteristic such that the effect of non-normality to the determination of optimal process mean, standard deviation and specification limits of product/process characteristic can be studied. The expected total cost associated with products includes the quality loss of conforming products, the rework cost of non-conforming products and the scrap cost of non-conforming products.

Numerical results show that the expected total cost associated with products is significantly influenced by the parameter of Burr’s density function, the target value of product/process characteristic, quality loss coefficient, unit rework cost and unit scrap cost.

The major assumption of the proposed model is that the lower specification limit must be positive for practical applications, which definitely affects the space of feasible solution for the different combinations of process mean and standard deviation.

The proposed model can provide industry/business application for promoting the product/service quality assurance for the customer.

The authors adopt the Burr distribution to determine the optimum process mean, standard deviation and specification limits under non-normality. To the best of their knowledge, this is a new method for determining the optimum process and product policy, and it can be widely applied.

The depth and breadth of the market for contingent claims, including exotic options, has expanded dramatically. Regulators have expressed concern regarding the risks of exotics to the financial system, due to the difficulty of hedging these instruments. Recent literature focuses on the difficulties in hedging exotic options, e.g., liquidity risk and other violations of the standard Black‐Scholes model. This article provides insight into hedging problems associated with exotic options: 1) hedging in discrete versus continuous time, 2) transaction costs, 3) stochastic volatility, and 4) non‐constant correlation. The author applies simulation analysis of these problems to a variety of exotics, including Asian options, barrier options, look‐back options, and quanto options.

This paper aims to comprehensively achieve the requirements of high assembly precision and low cost, a precision-cost model of assembly based on three-dimensional (3D) tolerance is established in this paper.

The assembly precision is related to the tolerance of parts and the deformation of matching surfaces under load. In this paper, the small displacement torsor (SDT) theory is first utilized to analyze the manufacturing tolerances of parts and the assembly deformation deviation of matching surface. In the meanwhile, the extracting method of SDT parameters is proposed and the assembly precision calculation model based on the 3D tolerance is established. Second, an integrated optimization model based on the machining cost, assembly cost (mapping the deviation domain to the SDT domain) and quality loss cost is built. Finally, the practicability of the precision-cost model is verified by optimizing the horizontal machining center.

The assembly deviation has a great influence on cost fluctuation. By setting the optimization objective to maximize the assembly precision, the optimal total cost is CNY 72.77, decreasing by 16.83 per cent from the initial value, which meets economical requirements. Meanwhile, the upper bound of each processing tolerance is close to the maximum value of 0.01 mm, indicating that the load deformation can be offset by appropriately increasing the upper bound of the tolerance, but it is necessary to strictly restrict the manufacturing tolerances of lower parts in a reasonable range.

In this paper, a 3D deviation precision-cost model of assembly is established, which can describe the assembly precision more accurately and achieve a lower cost compared with the assembly precision model based on rigid parts.

Addresses the standardization of the measurements and the labels for concepts commonly used in the study of work organizations. As a reference handbook and research tool, seeks to improve measurement in the study of work organizations and to facilitate the teaching of introductory courses in this subject. Focuses solely on work organizations, that is, social systems in which members work for money. Defines measurement and distinguishes four levels: nominal, ordinal, interval and ratio. Selects specific measures on the basis of quality, diversity, simplicity and availability and evaluates each measure for its validity and reliability. Employs a set of 38 concepts ‐ ranging from “absenteeism” to “turnover” as the handbook’s frame of reference. Concludes by reviewing organizational measurement over the past 30 years and recommending future measurement reseach.

Overview All organisations are, in one sense or another, involved in operations; an activity implying transformation or transfer. The major portion of the body of knowledge concerning operations relates to production in manufacturing industry but, increasingly, similar problems are to be found confronting managers in service industry. It is only in the last decade or so that new technology, involving, in particular, the computer, has encouraged an integrated view to be taken of the total business. This has led to greater recognition being given to the strategic potential of the operations function. In order to provide greater insight into operations a number of classifications have been proposed. One of these, which places operations into categories termed factory, job shop, mass service and professional service, is examined. The elements of operations management are introduced under the headings of product, plant, process, procedures and people.