Performance-based contracting: a literature review and future research directions

This paper aims to provide a review and synthesis of the performance-based contracting (PBC) literature across academic disciplines. It also seeks to examine how the operations and supply management (OSM) discipline in particular relates to PBC studies in other study fields. The research is based on a systematic literature review of 241 peer-reviewed articles across disciplines, published between 1985 and 2014. A classification framework of PBC research is proposed, addressing key aspects of PBC design and management: performance specification and evaluation, the design of incentives and their impact on supplier behaviour and risks allocation depending also on the risk attitudes of buyers and suppliers. The comparative analysis of literature by discipline helps identify current empirical and theoretical limitations of relevant OSM studies. The paper concludes that future OSM research should expand its theoretical framework and empirical focus to better understand PBC design and management. Eight specific suggestions for future OSM research are offered, e.g. examining the potential of PBC as means for managing sustainability and innovation goals of supply chains. The paper helps advance OSM research in this area by providing a structured overview of definitions, theories, conceptual frames, methods and empirical studies from other disciplines.     

An engineering design knowledge reuse methodology using process modelling

This paper describes an approach for reusing engineering design knowledge. Many previous design knowledge reuse systems focus exclusively on geometrical data, which is often not applicable in early design stages. The proposed methodology provides an integrated design knowledge reuse framework, bringing together elements of best practice reuse, design rationale capture and knowledge-based support in a single coherent framework. Best practices are reused through the process model. Rationale is supported by product information, which is retrieved through links to design process tasks. Knowledge-based methods are supported by a common design data model, which serves as a single source of design data to support the design process. By using the design process as the basis for knowledge structuring and retrieval, it serves the dual purpose of design process capture and knowledge reuse: capturing and formalising the rationale that underpins the design process, and providing a framework through which design knowledge can be stored, retrieved and applied. The methodology has been tested with an industrial sponsor producing high vacuum pumps for the semiconductor industry.     

Managing design variety, process variety and engineering change: a case study of two capital good firms

Many capital good firms deliver products that are not strictly one-off, but instead share a certain degree of similarity with other deliveries. In the delivery of the product, they aim to balance stability and variety in their product design and processes. The issue of engineering change plays an important in how they manage to do so. Our aim is to gain more understanding into how capital good firms manage engineering change, design variety and process variety, and into the role of the product delivery strategies they thereby use. Product delivery strategies are defined as the type of engineering work that is done independent of an order and the specification freedom the customer has in the remaining part of the design. Based on the within-case and cross-case analysis of two capital good firms several mechanisms for managing engineering change, design variety and process variety are distilled. It was found that there exist different ways of (1) managing generic design information, (2) isolating large engineering changes, (3) managing process variety, (4) designing and executing engineering change processes. Together with different product delivery strategies these mechanisms can be placed within an archetypes framework of engineering change management. On one side of the spectrum capital good firms operate according to open product delivery strategies, have some practices in place to investigate design reuse potential, isolate discontinuous engineering changes into the first deliveries of the product, employ ‘probe and learn’ process management principles in order to allow evolving insights to be accurately executed and have informal engineering change processes. On the other side of the spectrum capital good firms operate according to a closed product delivery strategy, focus on prevention of engineering changes based on design standards, need no isolation mechanisms for discontinuous engineering changes, have formal process management practices in place and make use of closed and formal engineering change procedures. The framework should help managers to (1) analyze existing configurations of product delivery strategies, product and process designs and engineering change management and (2) reconfigure any of these elements according to a ‘misfit’ derived from the framework. Since this is one of the few in-depth empirical studies into engineering change management in the capital good sector, our work adds to the understanding on the various ways in which engineering change can be dealt with.     

Towards the rational design of synthetic cells with prescribed population dynamics

The rational design of synthetic cell populations with prescribed behaviours is a long-standing goal of synthetic biology, with the potential to greatly accelerate the development of biotechnological applications in areas ranging from medical research to energy production. Achieving this goal requires well-characterized components, modular implementation strategies, simulation across temporal and spatial scales and automatic compilation of high-level designs to low-level genetic parts that function reliably inside cells. Many of these steps are incomplete or only partially understood, and methods for integrating them within a common design framework have yet to be developed. Here, we address these challenges by developing a prototype framework for designing synthetic cells with prescribed population dynamics. We extend the genetic engineering of cells (GEC) language, originally developed for programming intracellular dynamics, with cell population factors such as cell growth, division and dormancy, together with spatio-temporal simulation methods. As a case study, we use our framework to design synthetic cells with predator–prey interactions that, when simulated, produce complex spatio-temporal behaviours such as travelling waves and spatio-temporal chaos. An analysis of our design reveals that environmental factors such as density-dependent dormancy and reduced extracellular space destabilize the population dynamics and increase the range of genetic variants for which complex spatio-temporal behaviours are possible. Our findings highlight the importance of considering such factors during the design process. We then use our analysis of population dynamics to inform the selection of genetic parts, which could be used to obtain the desired spatio-temporal behaviours. By identifying, integrating and automating key stages of the design process, we provide a computational framework for designing synthetic systems, which could be tested in future laboratory studies.     

An option generation and selection methodology for process equipment selection

The option generation and selection (OGS) methodology forms part of a general approach for the design of agile chemical plants based on business, product and process knowledge, with support from information models. This paper describes an equipment OGS tool that encompasses the principles of combinatorial process and plant design. The main components of the methodology are: an equipment option generation model described as a set of objects, and the net relationships between them, and an equipment option selection model which consists of procedures for equipment selection. The two models are supported by databases containing information specific to each equipment type, the concept on which the equipment is based, and relationships with other equipment types. Robust, systematic and complete forms of these models can be used as the basis of an expert system for process equipment design, with equipment selected using these tools satisfying the requirements of both specific processes and families of processes (that contain common features, similar functional groups or similar raw material requirements for process operations). Application of the methodology also allows the evaluation of options for reconfiguring existing plant.     

A framework for developing engineering design ontologies within the aerospace industry

This paper presents a framework for developing engineering design ontologies within the aerospace industry. The aim of this approach is to strengthen the modularity and reuse of engineering design ontologies to support knowledge management initiatives within the aerospace industry. Successful development and effective utilisation of engineering ontologies strongly depends on the method/framework used to develop them. Ensuring modularity in ontology design is essential for engineering design activities due to the complexity of knowledge that is required to be brought together to support the product design decision-making process. The proposed approach adopts best practices from previous ontology development methods, but focuses on encouraging modular architectural ontology design. The framework is comprised of three phases namely: (1) Ontology design and development; (2) Ontology validation and (3) Implementation of ontology structure. A qualitative research methodology is employed which is composed of four phases. The first phase defines the capture of knowledge required for the framework development, followed by the ontology framework development, iterative refinement of engineering ontologies and ontology validation through case studies and experts’ opinion. The ontology-based framework is applied in the combustor and casing aerospace engineering domain. The modular ontologies developed as a result of applying the framework and are used in a case study to restructure and improve the accessibility of information on a product design information-sharing platform. Additionally, domain experts within the aerospace industry validated the strengths, benefits and limitations of the framework. Due to the modular nature of the developed ontologies, they were also employed to support other project initiatives within the case study company such as role-based computing (RBC), IT modernisation activity and knowledge management implementation across the sponsoring organisation. The major benefit of this approach is in the reduction of man-hours required for maintaining engineering design ontologies. Furthermore, this approach strengthens reuse of ontology knowledge and encourages modularity in the design and development of engineering ontologies.     

In search of design excellence

This paper is based on part of the results of an extensive survey of the role of new product design in international competitiveness. It reviews the literature on design management and highlights some weaknesses in the way in which design is managed in many UK industries, which apparently places the UK at a competitive disadvantage in manufacturing exports when compared with their major foreign competitors. The paper examines ways in which the management of design many be enhanced to improve design quality and achieve greater competitiveness. It was found that to maximize achievements in design, innovators must not only create awareness, but also create a climate in which everyone is committed to design quality throughout the organization. A wide range of functions involved in design management — managerial, marketing, technical, financial, etc. — must also be ‘happily married’ to achieve product excellence and hence market success.     

Effectivity date analysis and scheduling

The impact of design on logistics cannot be ignored, and design for logistics is a new concept similar to design for manufacturing or design for assembly. Engineering change is one of the scenarios that would require logistics support. Change control of a product data management (PDM) system is one of the major approaches for handling engineering changes today. According to principles of configuration management, during the change control workflow, there are three different dates: release date, effective date, and effectivity date utilised for controlling and managing change planning and scheduling. Effective date is the exact date that a released change takes effect to the shop floor workshop. Effectivity date is the expected date that decision makers plan for the change to take effect. In normal situations, multiple disciplines, such as design and development, purchasing, shop floor workshop, quality control, and so on, are involved in making a change decision on when a change is to become effective. In this paper, a linear programming effectivity decision model is proposed to concurrently support changes of design scheduling, and production planning and scheduling when an engineering change occurs. The proposed model succeeded in solving an integration problem of design scheduling, production planning and shop floor scheduling.     

A framework for designing supply chain disruptions management considering productive systems and carrier viewpoints

With the advent of the global and digital world, the number of geographically dispersed firms throughout the world has increased and the problem of Supply Chain (SC) disruption appeared as a main concern to many industries. In such context, designing disruptions management strategies for a robust SC has become a critical worldwide issue that is still under-explored. Since its design phase, this class of robust and global SC must integrate technologies and agents of production. However, the existing works only consider the Productive Systems (PSs) and the carrier viewpoint must also be considered since goods should be produced and distributed at the right quantity, at the right place and at the right time. In this complex task of designing disruptions management, a formal method must be used to integrate technologies ensuring the compliance of certain requirements, such as: developing collaborative and autonomous models, allowing reuse templates, considering analysis/simulation abilities and facilitating the interaction among engineering practitioners. Therefore, this paper presents a framework to model, analyse, control and monitor the robust and global SC, designing and integrating models with Petri Net, agent-based model techniques for disruptions management and considering both PSs and carrier viewpoints. A case study is investigated and the findings demonstrated the proposed solution supports decisions making for solving problems of design, analysis and control.     

An advanced CMII-based engineering change management framework: the integration of PLM and ERP perspectives

Previous studies of engineering change management (ECM) presented valuable results from the design domain of the product lifecycle management (PLM) perspective. However, few of these studies proposed a framework under the configuration management II (CMII) standards and its industrial implementation based on the design and manufacturing domains of PLM and enterprise resources planning. This study proposes an advanced CMII-based ECM framework. This framework has been successfully implemented in a large Taiwanese motorcycle manufacturer resulting in significant performance improvement. Major contributions of this study include: (1) presenting an advanced CMII-based ECM framework, (2) depicting information exchange and integration between the design and manufacturing activities based on five major ECM phases and their associated processes and (3) providing a basis for best practice from the motorcycle industry for reference in other manufacturing industries.     

A framework for decision-making in investment alternatives selection

Investment alternatives selection involves a variety of criteria that should be evaluated to provide a solid basis for decision-making. Some prior research has proposed methodologies and frameworks to support such alternatives selection. However, many of them present intrinsic limitations related to their applicability and complexity. Thus, this paper presents a framework for decision-making concerning investment alternatives that are usually related to equipment selection for a manufacturing process, technology selection for product development, product portfolio selection, and production strategy selection, among others. The framework is based on a multi-criteria approach that considers three main criteria: (i) strategy, which considers company market competitiveness; (ii) quality, which considers client requirements; and (iii) economic aspects, considering the overall financial benefits of the investment. These criteria are evaluated with the support of well-known tools from traditional management engineering such as SWOT, QFD, NPV and Payback. The results obtained through the use of these tools are rated using the MAUT method. Two major contributions are offered by this framework: (i) the integration of three key criteria for decision-making that enables to obtain a balanced analysis of the investment alternatives and (ii) the intrinsic easy-to-implement characteristic of the framework – based on the use of traditional tools. The proposed framework was applied in a tailor-made furniture company to support a make-or-buy decision, and the obtained results are discussed.     

产品包装信息管理系统的开发

利用VB 和Excel,AutoCAD 的二次开发功能,对产品包装中包装信息管理系统进行了研发。利用VB 的强大界面开发功能,结合AutoCAD 的图形绘制功能和Excel 对大容量条状数据的便捷存储优点,开发了产品包装信息管理系统。该系统依据已有的PDM 产品数据,能够完成包装自动设计,实现包装箱结构工程图形自动设计生成、包装信息文件的自动生成与管理等多项功能。     

Designer portfolio archetypes in design-intensive industries

ABSTRACT

The paper analyzes the designer portfolio configurations employed by firms, in design-intensive industries, to implement different product design strategies. Using the fuzzy set qualitative comparative analysis methodology, the paper explores how decorative lamps manufacturers, that first adopted the new LED technology, assembled their designer portfolios. The study shows that, in the early phases of LED lamps, four different designer portfolio archetypes were adopted by firms, two of them related to a product language divergence strategy and two to a product language convergence strategy: international design-star archetype, crowd design-innovator archetype, local ambassador archetype, international bridge archetype. These four archetypes are discussed, contributing to a better understanding of the relationship between product design strategies and designers’ management in design-intensive industries.     

A method to assess the effects of engineering change propagation

This paper presents a modelling method that seeks to support the prediction and management of undesired engineering change (EC) propagation during the design and development of complex products. The method builds on the house of quality and the change prediction method to model the effects of potential change propagation brought about by different change options. The objective is to better reflect how well each change option can address the product requirements. The method was applied to the design of a jet engine fan during a case study with an aerospace company. The findings suggest that this modelling approach is suitable for assessing the effects of potential EC propagation and can support companies in effective exploration of the design space.     

Optimal ordering policy for a price-setting newsvendor with option contracts under demand uncertainty

In this article, we investigate the newsvendor problem in a joint ordering and pricing setting in the presence of option contracts under demand uncertainty. At the beginning of a single selling season, the newsvendor who faces additive stochastic demand can obtain goods through two ways: ordering from a firm or purchasing and exercising call options. Single ordering (ordering from a firm only or purchasing and exercising call options only) and mixed ordering (ordering from a firm and purchasing and exercising call options simultaneously) cases are investigated. We find that the newsvendor’s optimal pricing and ordering strategies exist and are unique for both cases, respectively. In addition, when both cases are available, mixed ordering is the newsvendor’s optimal ordering policy. If only single ordering is available, the newsvendor prefers ordering from a firm when demand risk is low, while enjoys purchasing and exercising call options when demand risk is high. We also find that with option contracts, the newsvendor’s optimal order quantity and maximum expected profit are all decreasing in the option price and exercise price of product, while the optimal retail price in terms of option price and exercise price of product are intricate. Moreover, we show that, mixed ordering is more capable to deal with supply price volatility risk.     

Sustainable development of process facilities: state-of-the-art review of pollution prevention frameworks

Pollution prevention (P2) strategy is receiving significant attention in industries all over the world, over end-of-pipe pollution control and management strategy. This paper is a review of the existing pollution prevention frameworks. The reviewed frameworks contributed significantly to bring the P2 approach into practice and gradually improved it towards a sustainable solution; nevertheless, some objectives are yet to be achieved. In this context, the paper has proposed a P2 framework 'IP2M' addressing the limitations for systematic implementation of the P2 program in industries at design as well as retrofit stages. The main features of the proposed framework are that, firstly, it has integrated cradle-to-gate life cycle assessment (LCA) tool with other adequate P2 opportunity analysis tools in P2 opportunity analysis phase and secondly, it has re-used the risk-based cradle-to-gate LCA during the environmental evaluation of different P2 options. Furthermore, in multi-objective optimization phase, it simultaneously considers the P2 options with available end-of-pipe control options in order to select the sustainable environmental management option.     

A co-operation framework for product–process integration in engineering design

Many different studies have stressed the importance of co-operation in engineering design. This paper is based on an empirical study carried out over 18 months and based on fieldwork where the researcher worked in a design team as a mechanical engineer. The question of product–process integration is particularly critical in mechanical engineering and requires the development of specific co-operative procedures. Our results stress the importance of artefacts as intermediary objects in the design process and more specifically in the development of co-operative processes. We developed a framework centred on three conceptual levels:

• At product level, where we developed specific artefacts within a CAD environment, referred to herein as co-operating features,

• At organisation level, where we stress the importance of developing organisational learning and a new interface role,

• At actor level, where we stress the importance of developing reflective practices.

This conceptual framework aims to provide a foundation to develop instrumental settings for design co-operation.     

Is innovation design- or technology-driven? Citation as a measure of innovation pollination

The present study suggests a cross-citation measure comprised of design and utility patents and proposes a model of innovation pollination. The case of Dyson Ltd. provides empirical evidence of how a design-led, a technology-led, or a cross-pollinating innovation can function in the product innovation. Our findings reveal that the evolution of innovation pollination has distinguishing features according to the product category and the function of the company's prior innovation experience. Dyson's renowned bladeless fans and its bagless vacuum cleaners have been strongly driven by design and technology innovation, such cross-pollination is infrequent. We further discuss the implications technology, design, and innovation management strategy.     

Developing global supply chain quality management systems

This paper presents a global supply chain quality management (SCQM) framework as an extension of the traditional supply chain operations and quality management. Three distinct groups of variables are adopted in this study to illustrate the conceptual framework: a hierarchy of design variables, a hierarchy of system variables, and a hierarchy of problem solving methods. The aim of this theoretical framework is to offer practical guidelines to global business leaders and their value chain partners. This study also involves interviews with senior executives from a multinational enterprise in Taiwan. Four major SCQM themes are identified – design for six sigma (DFSS); international standards; supply chain management (SCM); global leadership and human resource management. In this study, we also view the cycle of decision making as an integral part of any global SCQM strategy. The analytic hierarchy process (AHP) is used to develop priority indices for the following three hierarchical levels: environmental scanning, strategic choice, and tactical choice. The presented framework adopts a systems approach and ensures that quality conscious products are designed, manufactured, and distributed.     

基于价值工程的施工管理技术创新

价值工程作为一门新兴管理技术，自20世纪40年代后期产生以来，已被大量运用于生产管理活动之中，特别是在工程建设领域得到广泛的运用，积累了丰富的经验。文章正是以价值工程理论为基础，着重探讨了其在施工管理过程中的应用，以求进一步推动我国施工管理技术的创新和发展。