Oya Icmeli Tukel

Outsourcing decision support: a survey of benefits, risks, and decision factors

Purpose – The purpose of this study is twofold. The first is to provide a structured review of the vast amount of outsourcing literature that has accumulated in the past two decades using a decision support framework. The second purpose is to statistically analyze the contents of the studies to identify commonalities as well as gaps, in order to suggest directions for future research.Design/methodology/approach – The contents of more than 200 publications are analyzed using a variety of approaches. A decision support framework is used to first classify whether the studies address outsourcing benefits, risks, motivations or factors. Next, each classification is further described by the type of benefits, risks, etc. Additional relevant contents such as type of organization, and the location of the outsourcing practice are also considered. Multivariate analyses consisting of cross tabulations, chi‐square testing and cluster analysis are used for categorizing the studies with the aim of identifying relationsh...

An investigation of buffer sizing techniques in critical chain scheduling

In this paper, we introduce two methods for determining feeding buffer sizes in critical chain project scheduling. Both methods integrate project characteristics into the formulation. Specifically, one of them incorporates resource tightness while the other uses network complexity. Both methods are tested and compared to two commonly suggested methods in the literature, the cut and paste method and the root square error method, as well as using no buffer as a benchmark. The comparison is done by means of a simulation study using the Patterson data set. The test results indicate that both of the suggested methods generate smaller buffer sizes while providing sufficient protection against delays in project completion time.

An empirical investigation of project evaluation criteria

In this article, we report on an empirical study conducted in the USA to determine the performance measures project managers commonly use to evaluate the success of their projects. Specifically, we identify project managers’ orientations toward using internal and/or customer driven measures of performance. We also investigate the priority given to these measures at different stages of a project by identifying the primary objective at those stages. In general we find that project managers’ primary success measure is quality and their most important objective is meeting customer needs. The priority given to this objective does not change during various stages of a project regardless of the project type and industry classification. The choice of performance measures, however, is influenced by project type and industry classification.

New product development projects: The effects of organizational culture

Despite the increasing use of project management within organizations, an attendant poor rate of success among these projects has been observed (Clancy & Stone, 2005; Ives, 2005). Seventy-five percent of all business transformation projects fail (Collyer, 2000) and only 16% of U.S. IT projects are completed on time and on budget (Peled, 2000). In an attempt to overcome such a high project failure rate, this paper investigates the effects of organizational culture on the performance of particular types of projects: new product development (NPD) projects. Using data from 95 U.S. organizations, the study provides evidence of the significant effects of organizational culture on NPD projects.

MRP in a job shop environment using a resource constrained project scheduling model

One of the most difficult tasks in a job shop manufacturing environment is to balance schedule and capacity in an ongoing basis. MRP systems are commonly used for scheduling, although their inability to deal with capacity constraints adequately is a severe drawback. In this study, we show that material requirements planning can be done more effectively in a job shop environment using a resource constrained project scheduling model. The proposed model augments MRP models by incorporating capacity constraints and using variable lead time lengths. The efficacy of this approach is tested on MRP systems by comparing the inventory carrying costs and resource allocation of the solutions obtained by the proposed model to those obtained by using a traditional MRP model. In general, it is concluded that the proposed model provides improved schedules with considerable reductions in inventory carrying costs.

Knowledge transfer among projects using a learn‐forget model

Purpose – The purpose of this paper is to analyze the impact of learning in a project‐driven organization and demonstrate analytically how the learning, which takes place during the execution of successive projects, and the forgetting that takes place during the dormant time between the project executions, can impact performance and productivity in the future.Design/methodology/approach – A learn‐forget model was developed using the learning curve concept prevalent in many manufacturing processes. The model assumes that learning occurs while project tasks are being performed and forgetting takes place during dormant times between the successive implementations. The log‐linear model was adapted, with both learning and forgetting rates being a function of the doubling or tripling of output. Forgetting is inhibited through the use of knowledge transfer tools such as use of close‐out documents or content management platforms. The model is applied to a simulated project environment where a number of projects a...

Application of customer lifetime value model in make-to-order manufacturing

Purpose – The applicability of the customer life time value (CLV) concept goes beyond consumer markets. Specifically, the purpose of this paper is to show how a make-to-order manufacturing company in a supply chain can set customer-focus manufacturing strategies using CLV. Design/methodology/approach – Data from an integrated steel plant is used to calculate the life time value of customers based on the past value, the potential value, and their loyalty. The past value of a customer is based on the historical data and the future value of a customer is then forecasted. The loyalty index of a customer is determined by survey results. Findings – In general, it was found that the CLV for the most valuable customers increases exponentially and the top 28 percent of customers constitute 80 percent of the total value of all customers. Research limitations/implications – This study focuses on make-to-order manufacturing organizations and the three strategies suggested for business process improvement need to be r...

Integrating Quality as a Measure of Performance in Resource-Constrained Project Scheduling Problems

A survey conducted in the United States in 1994 (Icmeli-Tukel and Rom 1998), revealed that the issues Project Managers (PMs) face today are more complicated than those studied in the project scheduling literature. The study indicates that for over 90% of PMs the objective is to maximize the quality of projects and their outcomes. They usually measure quality by the degree to which a project’s outcome conforms to the customer’s requirements and the degree to which the project completes within budget and on schedule. In order to achieve these goals, PMs are trying to eliminate the rework associated with non-conforming activities. A job is considered to be non-conforming when it fails to meet customer/design requirements and therefore needs some rework (Ireland 1991). Non-conformities usually result in increased project implementation time and cost. In the traditional Resource Constrained Project Scheduling Problem (RCPSP) formulations, however, the general assumption is that work will be done as scheduled and that rework will not be required. This assumption clearly makes the RCPSP models more amenable to solution yet less realistic. PMs report (Icmeli-Tukel and Rom 1998) that most of the projects they implement have at least one non-conforming activity which needs to be reworked before the project moves to the next stage. Because of these reworks, they have a difficult time anticipating delays and cost overruns when using traditional techniques. If an activity is (partially) reworked to satisfy customer requirements, then the start time of all immediately succeeding activities are delayed, which, in turn might delay the project completion time. This in turn contributes to the consistently poor record of project performance (Cooper 1994).

Knowledge-Salvage Practices for Dormant R&D Projects

Most successful firms have an abundance of new and old knowledge in their research and development laboratories, and only a fraction is being put into use in new product development. This knowledge is left over from projects that have been killed at different development stages and may actually carry considerable value. In this article, we propose a knowledge bank as a possible solution to preserve and possibly grow this knowledge. It is a self-sustaining institute with minimal or no ongoing effort from the donor company, yet manages the knowledge in a way that protects proprietary interests and actively fosters communication and interchange among sponsoring companies wherever possible. The framework of this structure, as well as how it works, is described here. Specifically, a system dynamics modeling of the knowledge bank is developed, and a simulation study is conducted using VENSIM®. The results confirm the viability of creating such a system in a consortium of organizations.

A Review of User Involvement in Information System Projects

In this study the authors provide a comprehensive literature survey of user involvement in information system projects. Specifically, the authors document and summarize user involvement by identifying studies that investigate user roles and activities, selection of users, type of communications used, and timing and level of their involvement. The authors review papers that employed various research methods and empirical studies whose models incorporated moderating and mediating factors, longitudinal studies, focus groups and case studies. The authors document the conditions favoring selected topics, models and metrics as well as highlight the contradicting results not supporting user involvement. This study constitutes an initial and systematic documentation of user involvement in information system projects and presents the opportunity to further improve the research in this subject area by leveraging findings and limitations of the current literature.