M. Riaz Khan

Recurring Managerial Problems in Small Business

This paper identifies and analyzes some recurring problems generally experienced by small businesses. It reviews performance studies made of fifty-two companies sponsored by the Small Business Administration over the period 1977 to 1981 to determine whether some broad operational patterns can be observed. An analysis of the key performance variables used in identifying major problems confronting the firms is presented here. The main problem areas are considered for the firms as a group and then as they fall in manufacturing, retailing, and service sectors. Findings are evaluated so that some general guidelines can be suggested for solving typical management problems.

An intra- and inter-industry analysis of e-business effectiveness

Electronic business (EB) on the Internet has been promoted as a revolutionary technology that will transform the way we do business. This paper presents an intra- and inter-industry financial performance (FP) analysis of three industries: retail (R), consumer products (CP), and food beverages and tobacco (FBT). Financial statements of 165 companies selected from these three industries extending over a period of 10 years were reviewed to determine whether the EB activities have any significant impact on their FP, and whether this impact varied across industries. This comparative examination indicated that the EB companies did better than their non-EB counterparts in the post-EB period and the FBT industrial sector performed better than the R and CP sectors.

USING SUPER-EFFICIENCY DEA TO EVALUATE FINANCIAL PERFORMANCE OF E-BUSINESS INITIATIVE IN THE RETAIL INDUSTRY

Electronic Business (EB) on the Internet is an attractive technology for traditional business organizations to improve their financial performance. The Web-based economic model is supposedly more efficient at the transaction cost level. It also provides cost-effective marketing, global market access, and a disintermediation of costly distribution channels. The current paper uses super-efficiency data envelopment analysis (DEA) model to evaluate the financial performance of e-business initiatives in the retail industry. Because of the possible infeasibility of the super-efficiency DEA model, the use of super-efficiency DEA model has been restricted. This paper demonstrates that if super-efficiency is interpreted as input saving or output surplus achieved by a specific efficient DMU, infeasibility does not necessary indicate the best performance. A new approach is applied to correctly characterize and rank the performance of a set of EB companies and non-EB companies in the retail industry. This analysis indicates that the EB companies perform better in some areas than their non-EB counterpart.

Impact of Counseling on Small Business Performance

This paper assesses the effect of the Small Business Institutes counseling program at the University of Lowell on small business performance as perceived by client firms located in New England. In analyzing data gathered from a population of 52 firms, the authors initially classify recommendations made by counseling teams for the purpose of improving business operations. The impact of the suggestions is examined primarily by considering various dimensions of their implementation. After weighing results of an evaluation of the counseling service as discerned by the client firms, the authors summarize their findings and draw conclusions.

The Human Resource Factor in Small Business Decision Making

Activities of a group of small firms were studied over a six-year period to determine the manner In which their performance reflected the results of a counseling program. The effects of counseling In a number of functional areas were explored. Findings of the Investigation suggest that while adequate attention to marketing, financial, and technological matters Is essential, firms that Ignore the requirements of sound human resource management may fall to remain competitive.

Financial Impact of E-Business Initiatives in the Retail Industry

Electronic business (EB) on the Internet has been promoted as a revolutionary technology that will transform “the way we do business.†This paper presents the results of an exploratory study, which compares the financial performance (FP) of 73 publicly held U.S. corporations from the retail industry over a ten-year period. The study analyzes the financial statements of these companies to determine whether EB initiative have had an impact on their financial performance. The results indicate that companies with EB initiatives experienced improved performance in the post-EB era, though not overwhelmingly or across the board. In order to reassure that the observed improvement was not a result of the favorable economic climate of the late 1990s, the 36 companies with EB initiatives were compared against 37 companies with no EB initiatives (nEB) during the same time period. This comparative analysis of 730 sample data points indicates that the EB companies did perform better in some areas than their nEB counter part, albeit marginally.

Planning laboratory staffing with a queueing model

Abstract Service organizations that strive for growth in a competitive environment face a difficult task of capacity planning. Adequate facility size that provides quality service in a cost-effective manner is critical to the success and long-term viability of the organization. The process of determining the desired level of capacity must include an impact evaluation of various capacity alternatives and the levels of anticipated demand on service quality and revenues. Queuing problems occur in operations, including the design of facility layouts, staffing decisions, and physical capacity problems. Queuing theory is useful in analyzing many of the problems associated with process design. Analytical queuing models may be used to obtain a first approximation to a queuing problem or to make a low-cost analysis. Relying upon some statistical concepts and results of the queuing technique, this paper proposes a framework for an actual outpatient phlebotomy laboratory that is designed to identify an optimal configuration of capacity level and the business volume for which the amount of revenues is maximum. The case of an actual hospital laboratory is analyzed for illustration.

Estimating Relative Efficiency of DMU: Pareto Principle and Monte Carlo Oriented DEA Approach

Abstract The traditional data envelopment analysis (DEA) models treat a decision making unit (DMU) as a “black box”, which is often criticized for not considering the inner production mechanism of a production system. The network DEA models developed to overcome this deficiency by considering the internal structure of a DMU have recently gained popularity. The inner data, however, are not generally available for real application purposes. This paper, on one hand, addresses the problem with the traditional DEA for not considering the inner structure and, on the other, with the network models for missing inner data in parallel production settings. Procedures built on managerial information of production processes, as characterized by the Pareto principle, are presented that consider the inner production mechanism as well as the data availability in a reliable way. Firstly, the production activities of a DMU are classified into a core business unit (CBU) and a non-core business unit (NCBU). Secondly, the internal information related to inputs/outputs is assumed to be available for the DMU under evaluation; whereas for the other DMUs, this data is generated by using the Pareto principle. In addition, the Monte Carlo method, also known as the parametric bootstrap, is applied to estimate the efficiency of the DMU. A numerical example illustrates the proposed method.

An efficiency measurement model for a computerized warehousing system

SUMMARY This paper introduces a model for efficient utilization of warehouse personnel in an inventory selection process. A simple mathematical model, based on a time study that can be applied to establishing standards for efficiency measurement of labour in a warehouse setting is presented. The problem of determining a standard to compute performance in an environment with variable workload is solved by using an adjustable standard for each particular assignment. Specifically the proposed model is designed to estimate the time required to complete a picking cycle. Three time components are considered; the lead time, travel time, and non-efficient time. The results of an empirical study are used to set the values of system parameters. The use of a computer system that can generate order lists is essential for an effective application of this methodology. Useful information can be obtained that can aid managers in formulating and implementing incentive plans and for controlling the labour cost which repres...

A network flow algorithm for optimal resource allocation

Abstract This paper introduces a network flow method for manpower scheduling and resource allocation. The network formulation of the problem permits the development of an algorithm that determines the minimal flow of resources through the network. The method presented here corresponds to the Simplex method, for in both methods the value of the objective function is optimized while the capacity limitations are preserved. The procedure proposed here, however, uses a more economical problem representation and is computationally more efficient. The efficacy of the minimal flow algorithm and its use is illustrated for a production system but the applicability of the procedure is sufficiently broad for it to work in other problem situations just as well.