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Section 404 of the Sarbanes–Oxley Act (SOX) altered the relationship between auditors and their clients by requiring an external audit of companies’ internal controls. Regulatory guidance is interpreted and applied by external auditors to comply with SOX. The purpose of this paper is to apply service operations management theories and techniques to the internal control audit process to better understand the role regulatory guidance plays in audit services. We discuss service operations management theories that apply to the production of audit services and employ the operations management technique of simulation to examine the effects of a historical relationship between the client and the auditor, information sharing between the client and the auditor, and the auditor’s perceived risk of the client on the internal control audit process. The application of service operations management theories and the simulation results illustrate that risk and information sharing are key factors for the audit process. The results suggest the updated Public Company Accounting Oversight Board guidance from Auditing Standard 2 to Auditing Standard 5 appropriately increased audit effectiveness by encouraging risk-based judgments and information sharing. This paper merges accounting and service operations management research to examine the effects of regulatory guidance on the internal control audit process. The paper uses simulation to illustrate the importance of interpreting regulatory guidance and the specific effects of risk and information sharing on the internal control audit process.

Purpose – The notion of output (Bouckaert, 2005; OECD, 2007) is more and more widespread in the performance measurement systems in the public sector. More generally, several reforms are promoting the implementation of key indicators such as management by objectives and quality management.

Our study introduces a first reflection about a performance measurement model of output based on the Theory of Constraints (TOC) in one public administration. The particularity of our model is the combination of theoretical design and practical implementation. Thus, an adjustment stage has been achieved in order to reach a realistic and sturdy model. It is also an opportunity to test the TOC indicators system, which is becoming prevalent in research activities (Davies & Mabin, 2009).

Methodology/approach – First of all, we present a literature review, which associates the concept of output, the TOC, and the notion of performance in a public administration. After that, we explain the design stage to define the key performance indicators.

During a two-month test phase, this measurement system was implemented in one public administration in Luxembourg; data were collected to draw up a dashboard. Subsequently, the model was adjusted in order to fit with the practice and observed cases.

Findings – We consider the limits of this measurement system, especially on certain aspects like the compliance with law. Furthermore, we show the major contribution of our model based on the TOC, which is to move from one local optimum to a global optimum.

Originality/value of paper – Thus, this publication highlights a model of performance measurement in a public administration, and the results of its implementation. It emphasizes the practical value of these indicators, the decision-making efficiency, and the appropriate level of use. The measurement model based on the TOC had a high interest for operational as well as for the managerial staff.

Increasing competition within the global supply chain network has been pressuring managers to improve efficiencies of production systems while, at the same time, reduce manufacturing operation expenses. One well-known approach is to have better control of the manufacturing system through more accurate forecasting and efficient control. In other words, a production control paradigm with more reliable forward visibility should help in maintaining a cost-effective yet lean manufacturing environment. Hence, this study proposes a predictive decision support system for controlling and managing complex production environments and demonstrates a Visual Interactive Simulation (VIS) framework for forecasting system performances given a designated set of production control parameters. The VIS framework is applied to a real-world manufacturing system in which the primary objective is to minimize total production while maintaining consistently high throughput and controlling work-in-process level. Through this case study, we demonstrate the use and validate the effectiveness of VIS in optimization and prediction of the examined production system. Results show that the predictive VIS framework leads to better and more reliable decision making on selection of control parameters for the manufacturing system under study. Statistical analyses are incorporated to further strengthen the VIS decision-making process.

Hospitality services are among the most robust experiences enjoyed by consumers. To deliver them successfully, careful attention to detail is first needed for the design and development of those experiences. This chapter begins by exploring the array of elements that holistically construct an experience, from process to people to physical environments. Then, the customer experience management framework is used to outline a recommended technique for approaching experience design. Finally, a brief survey of visualization techniques shows how experiences can be modeled for assessment and improvement.

Achieving reliable instrument reprocessing requires finding the right balance among cost, productivity, and safety. However, there have been few attempts to comprehensively examine sterile processing department (SPD) work systems. We considered an SPD as an example of a socio-technical system – where people, tools, technologies, the work environment, and the organization mutually interact – and applied work systems analysis (WSA) to provide a framework for future intervention and improvement.

The study was conducted at two SPD facilities at a 700-bed academic medical center servicing 56 onsite clinics, 31 operating rooms (ORs), and nine ambulatory centers. Process maps, task analyses, abstraction hierarchies, and variance matrices were developed through direct observations of reprocessing work and staff interviews and iteratively refined based on feedback from an expert group composed of eight staff from SPD, infection control, performance improvement, quality and safety, and perioperative services. Performance sampling conducted focused on specific challenges observed, interruptions during case cart preparation, and analysis of tray defect data from administrative databases.

Across five main sterilization tasks (prepare load, perform double-checks, run sterilizers, place trays in cooling, and test the biological indicator), variance analysis identified 16 failures created by 21 performance shaping factors (PSFs), leading to nine different outcome variations. Case cart preparation involved three main tasks: storing trays, picking cases, and prioritizing trays. Variance analysis for case cart preparation identified 11 different failures, 16 different PSFs, and seven different outcomes. Approximately 1% of cases had a tray with a sterilization or case cart preparation defect and 13.5 interruptions per hour were noted during case cart preparation.

While highly dependent upon the individual skills of the sterile processing technicians, making the sterilization process less complex and more visible, managing interruptions during case cart preparation, improving communication with the OR, and improving workspace and technology design could enhance performance in instrument reprocessing.

This chapter examines why managed clinical networks are an appropriate approach to sustainable healthcare, and discusses the conditions for the effectiveness of these multi-stakeholder, clinician-led modes of organizing. It describes the development of a national clinical network to achieve system-wide improvement in the provision of publicly funded cardiac surgery services in New Zealand, and the subsequent evolution of a broader network encompassing the whole cardiac care patient pathway.

The case study of the two cardiac clinical networks focuses on the emergence and evolution of the networks over a four-year period from 2009. Data were collected from interviews with key stakeholders of both networks and from internal and published documentary evidence. Analysis of the case study is informed by network theory and prior studies of managed clinical networks.

Progress made towards the achievement of the goals of the initial cardiac surgery network encouraged a broadening of focus to the entire cardiac care pathway and the establishment of the national cardiac network. An important benefit has been the learning and increase in understanding among the different stakeholders involved. Both clinical networks have demonstrated the value of clinician engagement and leadership in improving the delivery of health services, and serve as a best practice model for the development of further clinical networks for health services that require a national population base.

The case study analysis of the two cardiac clinical networks identifies five mutually reinforcing themes that underpin network effectiveness: network structure, management and governance, and internal and external legitimation. These themes encompass a number of factors suggestive of successful managed clinical networks, and offer insights into the use of such networks in organizing for sustainable healthcare.

This paper reviews extant contemporary literature in the area of entry mode choice in service firms and analyzes 14 empirical studies conducted in the area. The review is limited to articles which focus specifically on entry mode choice and the determinants of such a choice. The publication time frame covers the period from 1977 to 2003. The review observations in relation to factors such as the origin of the research, the theoretical frameworks underpinning existing entry mode research, methodological approaches and other relevant patterns are presented. The analysis highlights the paucity of empirical research in the area, which in turn has been largely fragmentary and exploratory in nature. It suggests that research sites need to be extended into Europe, alternative research designs need to be considered and the opportunity to conduct some form of collaborative research warrants exploration.