Alex Coman

PRODUCTION OUTSOURCING: A LINEAR PROGRAMMING MODEL FOR THE THEORY-OF-CONSTRAINTS

This paper presents an analysis of the outsourcing problem. Pertinent variables are identified and the relationships between them are defined. We formulate the outsourcing problem as a Linear-Programming (LP) problem and identify an analytical solution. We proceed with an example examining three decision models: standard cost accounting, standard Theory-Of-Constraints (TOC) and our own solution. The model enables managers to determine which products to manufacture and which to outsource. The solution of the LP formulation enables managers to apply the model by computing an operational ratio, without having to solve a linear programming problem. The final model is simpler to apply and requires the computation of fewer variables than other prevalent models.

Focused SWOT: diagnosing critical strengths and weaknesses

Despite the problems involved in its use, SWOT (strengths-weaknesses-opportunities-threats) analysis remains a major strategic tool for listing the strengths and weaknesses of an organisation, for recording the major strengths and translating them into value. This paper presents a straightforward methodology for making a structured analysis of strengths and weaknesses, based on an analysis of important value-creating events and the strengths and weaknesses that caused these events. The focused SWOT methodology distils the strengths and weaknesses into core competences and core problems, by using the core-competence tree and the current-reality tree. The core competences and core problems are then linked into a plan of action aimed at preserving and leveraging the organisations core competences, while defending against exposure to core problems. Applications of the methodology are presented and it is demonstrated in a detailed case study.

Overdosed management: How excess of excellence begets failure

The managerial world has been inundated with dozens of sound management theories during the last three decades. Among them are the Balanced-Scorecard, Activity-Based-Costing, Lean, Six Sigma, TQM, TOC, MBO, MCDM, Core com- petencies, Vision, Coaching, Outsourcing and many others. The application of these models has often proved disappointing for many companies. A major reason for the failure of these models is the OVERDOSE SYNDROME: taking good principles to destructive extremes. This paper analyzes the origins of the managerial overdose syndrome, illustrates its undesired outcomes and suggests ways to circumvent them in the future. Cases will illustrate the managerial overdose phenomenon and its remedies.

FAST: Value Creation through Technology Investment Management

Firms such as General Motors facing difficult competitive conditions must choose a number of technological investments from a broad range of opportunities. The FAST methodology rationalizes the technology selection and implementation process. FAST applies Root-Cause-Analysis for the identification of Root-Problems and Core-Competencies. Potential technological investments are developed into scenariosand their Key-Success-Factors are identified. Gap analysis assesses the risk related to the investment in each technology, The risk is defined as the Gap between the organizations available technological assets and the factors required for success. Technological challenges can be overcome through business alliances. Alternative technologies are mapped on the Ease/Value continuum and the optimal portfolio is selected.

Achilles’ heel strategy: identifying and leveraging a competitor’s weakest point

Significant developments in military strategy over the past century have had little impact, if any, on business strategy. This article focuses on the military paradigm shift from brute-force frontal confrontation as practised in the First World War to shrewd identification of weaknesses in the adversary’s rear. To apply this insight in the business world, we present a methodology focusing on the weakest link: the Achilles’ heel. We apply this methodology in identifying the adversary’s Achilles’ heel and attacking it. We aim to avoid attacking the competitor’s front namely its products in the marketplace through painful head-to-head attrition price and advertising wars. Instead, we propose a new attack strategy – focusing on the adversary’s weakest link. The study integrates a new military insight, specifically from an approach called operational theory, with an insight from the theory of constraints. The sophistication of the Achilles’ heel strategy makes it particularly effective for small players – David competing with large Goliaths. We present a methodology: identifying the Achilles’ heel; deciding whether or not to attack it; and tailoring an Achilles’ heel strategy. The theory is illustrated by numerous business and military applications.

Assessing the Performance of a Court System: A Comprehensive Performance Measures Approach

Many court systems suffer from long lead times, poor service quality, and low throughput. In many cases improvements are continuously introduced through various managerial and professional methods. This article proposes a set of measures to assess the effectiveness of court systems. This set of performance measures includes response-time, throughput, and work-in-process. While court systems generate a multitude of statistical data it is difficult to apply them across individual courts. The article tailors well established generic performance measures to the specific court arena. The individual measures are aggregated into a single figure that assesses the courts performance along the time axis and relative to comparable court systems. The proposed measure of performance and the aggregate score were validated with real life figures from the Israeli court system.

New Product Attack Roadmapping

Summary form only given. Models applying to the disciplined development of new products range from Porters generic strategies and product portfolio maturity models on the strategic level, to value-engineering and quality-function-deployment on the tactical level. We present a consistent view translating strategic concepts into product platform design. We merge the spiral model with the product portfolio strategy to introduce the WAVE model of platforms, releases and versions. We use the concept of attack-angle to introduce four alternative new-product launching roadmaps. These attack angles are: skimming, storming, flooding and piercing. The classical skimming attack angle is appropriate for innovative breakthroughs such as the Segway. The storming attack angle is appropriate for innovative pharmaceutical products aiming to maximize profits before patent protection expiry and the emergence of generic products. The flooding attack angle is appropriate in cases where network effect benefits a single dominant product architecture, as in the case of game platforms. Finally, the piercing attack angle is appropriate for new inexpensive technologies such as Linux. The criteria and benefits of each attack angle are illustrated with real world examples.

ARENA: Structured Visual Mapping of the Technological Ecology

Summary form only given. A study of five hundred senior executive presentations to the analyst community reveals multiple references to the business arena: technologies, competitors, distribution chain, supply chain, regulators, media, markets etc. The study exposes the fact that senior executives in large US and international firms strive to map their business environment. Many of these efforts take a visual form. The study shows that these visual representations are inconsistent in terms of symbols, syntax, flow etc. Academic approaches to visual arena mapping are just as unstructured. We appropriate the Unified-Modeling-Language - a discipline developed for systems analysis and design by computer scientists to map the business arena. Next, we present the ARENA formalism. Finally, we illustrate how the ARENA formalism facilitates a synthesis of concepts and models from the technology management realm.