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Engineering Management, IEEE Transactions on

Issue 2 • Date May 2013

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Displaying Results 1 - 25 of 26
  • Table of Contents

    Page(s): C1 - C4
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  • IEEE Transactions on Engineering Management publication information

    Page(s): C2
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  • Editorial for May 2013 Issue

    Page(s): 213 - 214
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  • Predicting Project Portfolio Success by Measuring Management Quality—A Longitudinal Study

    Page(s): 215 - 226
    Save to Project icon | Request Permissions | Click to expandQuick Abstract | PDF file iconPDF (494 KB) |  | HTML iconHTML  

    Many firms struggle with managing a portfolio of multiple interdependent projects. Therefore, practitioners and researchers are eager to learn which factors affect project portfolio success and how it can be increased. However, it takes some time for changes in management practices to reveal their potential. Thus, it is interesting to know how portfolio success can be predicted and what the possible indicators of this eventual success will look like. For this purpose, we propose the concept of management quality, which allows the anticipation of project portfolio success much earlier than the time at which established success criteria become measurable. We conceptualize and empirically validate management quality as a multidimensional construct consisting of information quality, allocation quality, and cooperation quality. We demonstrate the prognostic relevance of management quality to project portfolio success on a longitudinal sample of project portfolios with multiple informants over a time period of two years. Our results show a strong positive influence and thus support the notion of a causal link between management quality and portfolio success. View full abstract»

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  • Vintage Innovation: How to Improve the Service Characteristics and Costumer Effectiveness of Products Becoming Obsolete

    Page(s): 227 - 237
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    A number of studies analyzed how old technology often improves its technical performance or rate of innovation after technological change. Many authors focused on the “technical part” of old technology-based products and analyzed their improvements of performances in relation to gains in technical efficiency (more efficiency leads to more technical performance). However, such improvements could be analyzed even from consumer side. This paper adopts the Saviotti and Metcalfe theoretical framework in order to analyze such costumer-related perspective. The present conceptual paper contributes to the literature by explaining an innovative approach for the improvement of service characteristics (performance) and costumer effectiveness of products becoming obsolete after the emergence of a new competing technology. The name proposed for this approach is vintage innovation. This paper reports an illustrative case study: the vinyl emulator for turntablists disc jockeys. This approach shows that companies have to focus, paradoxically, their R&D efforts on new technology in order to improve costumer effectiveness of declining products. In particular, vintage innovation generates value for companies when users form a community of practice. View full abstract»

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  • Incentive Alignment and Risk Perception: An Information Security Application

    Page(s): 238 - 246
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    Technologies and procedures for effectively securing the enterprise in cyberspace exist, but are largely underdeployed. Reasons for this shortcoming include the neglect of the role of stakeholder perceptions in organizational reward systems, and misaligned incentives for effective allocation of resources. We present a methodology for practitioners to employ, with examples for identification of perverse incentives-situations where the interests of a manager or employee are not aligned with those of the organization-and for estimation of the damage caused by incentive misalignment. We present our revision to the risk perception model developed by Fischhoff and Slovic. We also present the results of our findings from our interviews of 42 information security executives across the U.S. about the role of risk perception and incentives in information security decisions. We discuss how to identify and to correct misalignments, to develop efficient incentive structures, and to include perceptual principles and security governance in making information security a property of the organizational environment. This research contributes to the practice and theory of information security, and has several implications for practitioners and researchers in the alignment of incentives and symmetrization of information across organizations. View full abstract»

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  • Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition

    Page(s): 247 - 259
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    We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a function of the prices in each channel. We model each channel as a newsvendor problem, with price and order quantity as decision variables. In addition, the manufacturer must choose the wholesale price to charge to the independent retailer. We analyze the optimal decisions for each channel and prove the existence of a unique equilibrium for the system. We compare this equilibrium solution to the solution for an integrated system, in which the manufacturer owns both the online store and the retailer. To enable supply chain coordination, we propose two contract schemes: a modified revenue-sharing contract and gain/loss sharing contract. We show that, in cases where the retail channel has a larger market than the online channel, such contracts enable the manufacturer to maintain price discrimination, selling the products in different channels at different prices. Finally, we perform a comprehensive numerical study to consider the impact of the model parameters on the equilibrium and to demonstrate the performance of the proposed coordination contracts. We conclude that coordination is most critical for products which are highly price sensitive and for systems in which the online and traditional retail channels are not viewed as close substitutes. View full abstract»

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  • Direct and Mediated Effects of Product Modularity on Development Time and Product Performance

    Page(s): 260 - 271
    Save to Project icon | Request Permissions | Click to expandQuick Abstract | PDF file iconPDF (518 KB) |  | HTML iconHTML  

    Product modularity is often considered a crucial driver for the improvement of new product development (NPD) performance, in terms of NPD time and product performance, especially in those contexts characterized by a high product variety and constantly changing demand. However, quantitative studies demonstrating these links are scant and an increasing amount of anecdotal evidence suggests that there is a need to develop a more complete theory on the effects of product modularity on NPD time and product performance by examining the potential mediating effect of supplier involvement in NPD. To meet this need, we analyzed the impact of product modularity on NPD time and product performance, and whether supplier involvement in NPD can mediate “modularity-NPD time” and “modularity-product performance” relationships. Data from a sample of 201 manufacturing plants demonstrate that product modularity significantly affects NPD time and product performance. In addition, the impact of modularity was partially mediated by the involvement of suppliers in NPD. A better understanding of this effect can contribute to clarifying the mechanisms by which product modularity affects NPD time and product performance and thus could give guidance to managers on how to lever product modularity in order to improve the NPD process. View full abstract»

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  • The Value of Capacity Sizing Under Risk Aversion and Operational Flexibility

    Page(s): 272 - 288
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    Risk aversion typically erodes the value of an investment opportunity, often increasing the incentive to delay investment. Although this may be true when the decision maker has discretion only over the timing of investment, any additional discretion over the capacity of a project may lead to different results. In this paper, we extend the traditional real options approach by allowing for discretion over capacity while incorporating risk aversion and operational flexibility in the form of suspension and resumption options. In contrast to a project without scalable capacity, we find that increased risk aversion may actually facilitate investment because it decreases the optimal capacity of the project. Finally, we illustrate how the relative loss in the value of the investment opportunity due to an incorrect capacity choice may become less pronounced with increasing risk aversion and uncertainty. View full abstract»

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  • Analyzing Product Architecture Under Technological Change: Modular Upgradeability Tradeoffs

    Page(s): 289 - 300
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    A modularly upgradeable product allows customers to keep pace with technology by replacing modules instead of updating the entire unit, thus minimizing development and production costs for the firm. Despite these advantages, seemingly few consumer products are modularly upgradable (rather they are integral from the users' perspective). To offer possible explanations, and help guide firms in enhancing the relative attractiveness of modularity, we develop an economic model where the firm's frequency of product introduction and the end-users' frequency of upgrades are endogenous. We characterize the firm's introduction decisions under 1) an integral upgrade strategy, where the entire product is newly designed each generation, and 2) a modular upgrade strategy, where individually upgraded components are offered. We find that, contrary to intuition, the value of modularity diminishes with the overall rate of innovation in component technologies. On the other hand, the value of modularity increases with the difference in the rates of improvement between components, and increases when customers are more technically sophisticated, when production costs are high, and when the performance loss due to modularization is low. View full abstract»

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  • Guest Editorial: Sustainability in Engineering Management—Setting the Foundation for the Path Forward

    Page(s): 301 - 314
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    This paper provides an overview of sustainability-based research in Engineering Management, with a specific emphasis on work published in technology and innovation management academic journals. The importance of sustainability is not lost on managers and researchers since this research is necessary for the basic survival of society and man. This paper not only identifies the developments that have occurred in sustainability research, based on the departmental topics of IEEE Transactions on Engineering Management, but also potential research streams in the field. We observe that the research in this area has seen its largest growth only in the past few years, but can be traced back for almost 40 years. We also provide an overview of the special issue associated with this review along with an introduction to Sustainability in Engineering Management. View full abstract»

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  • Green New Product Development: The Pivotal Role of Product Greenness

    Page(s): 315 - 326
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    This study aims to develop an integrative framework for green new product development (NPD) based on the existing literature and to empirically study the applicability of that integrative framework. This study answers three calls: for research that is rooted in a traditional NPD perspective, for research that integrates marketing aspects in a model of green NPD, and for research that acknowledges variations in greenness. The results from eight case studies in two industries (i.e., the chemical and food industries) substantiate the integrative framework and suggest that it provides a good basis for understanding green NPD. The study demonstrates that green NPD is not fundamentally different from traditional NPD but does contain features and underlying mechanisms that reflect the increased complexity of green NPD. The framework incorporates the targeting and positioning of green product innovations, thus establishing itself as a holistic framework. Most importantly, the study shows how greenness plays a pivotal role in tying the various elements of the framework together. The realized greenness of a new product is a central concept that helps managers understand complex relationships among industry type, green targeting, and green positioning. View full abstract»

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  • An Extended Fuzzy-AHP Approach for the Evaluation of Green Product Designs

    Page(s): 327 - 339
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    Environmental concerns, from consumers, governments, and academics, have encouraged businesses to incorporate more environmentally conscious designs in their new product development. However, selection of the best green design is a decision-making process that is not easy to address. Life cycle assessment (LCA) is a popular and comprehensive tool to accomplish the objective. Nevertheless, LCA is a time-consuming process that requires substantial resources and expertise. This research proposes an innovative approach to performing structured LCA in conjunction with the concept known as fuzzy analytical hierarchical process. In doing so, some of the disadvantages of LCA can be remedied and this provides a practical tool for performing LCA. View full abstract»

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  • Green Product Design With Engineering Tradeoffs Under Technology Efficient Frontiers: Analytical Results and Empirical Tests

    Page(s): 340 - 352
    Save to Project icon | Request Permissions | Click to expandQuick Abstract | PDF file iconPDF (1334 KB) |  | HTML iconHTML  

    To implement green product design, many companies today utilize the product-line strategy to develop environment-friendly products for customers with different willingness-to-pay for the environmental attributes of a product. One major challenge in designing green products is how to deal with the engineering tradeoff between the traditional and environmental attributes along the technology efficient frontier. In this paper, we conceptualize the technology efficient frontier in green product design, and perform theoretical and empirical analyses on the design decisions under different functional forms of efficient frontiers. We develop an analytical framework for identifying the optimal designs under general forms of efficient frontiers, and propose a novel use of trigonometric functions to analyze the design decisions under the linear, concave, and convex efficient frontiers. Additionally, we analyze the average environmental qualities under different efficient frontiers and show that switching between different product-line strategies allows a firm to achieve higher average environmental quality as an alternative to pushing the efficient frontier outward through technology advancement. Moreover, we conduct empirical tests to demonstrate how to empirically identify an efficient frontier and estimate key model parameters. Our analytical results provide new insights for decision makers to manage and regulate green product design with engineering tradeoffs. View full abstract»

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  • Environmental Sustainability Initiatives: A Comparative Analysis of Plant Efficiencies in Europe and the U.S.

    Page(s): 353 - 365
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    The importance of environmental sustainability initiatives (ESI) for engineering and supply chain management practice and research is undeniable. However, despite the widespread attention to this domain, investigations in the effects of ESI on performance have been ambiguous and led to contradicting results, calling for the examination of contingencies influencing the relationship. This study works to bring insight and clarity into this debate by a comparative analysis of ESI among efficient and inefficient plants in Europe and the U.S. Specifically, using a sample of 402 plants located in Europe and the U.S., we study the impact of an explicit set of ESI (recycling, waste reduction, pollution prevention, ISO 14000 certification) on plant efficiency, an important performance measure which is, however, rarely considered. Basing our rationale on the resource-based view of the firm, we suggest that plants more heavily engaged in ESI are also characterized by a greater level of efficiency. We test this contention in both European and U.S. plants. Extending this cross-national comparison, we further study whether the emphasis on ESI differs in the two country groups. Relying on institutional theory, we suggest that the pursuit of ESI is enhanced among European plants, compared to their U.S. counterparts. Our findings and conclusions draw attention to the importance of contingencies to be considered and bring light to the seemingly contradictory findings in prior research. Important implications for engineering and supply chain management practice and research are highlighted. View full abstract»

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  • How to Balance Sustainability and Profitability in Technology Organizations: An Ambidextrous Perspective

    Page(s): 366 - 385
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    Technology is the catalyst for sustainable development. In this context, a key challenge for technology organizations is to balance sustainable development with conventional, profit-driven development. However, despite its significance, such a balance has largely been overlooked in the extant literature. In this study, we examine this balance through the novel lens of ambidexterity in order to understand how it is achieved. Accordingly, we conducted a case study at China Mobile, the world's largest telecommunication company, which recently launched a comprehensive Green-IT program with impressive results. Our study focused on four major stakeholders of the program: Top Management Team, Business Units, Supplier Network, and Customer Network. Two models were later derived by means of synthesized analyses of these four stakeholders: the process model, consisting of four phases, depicts an incremental and iterative development process and defines a step-by-step guideline to achieving a sustainable and profitable balance; the integrated model, consisting of four types of ambidexterity, delineates collective actions of the four major stakeholders and defines an overall guideline for them to collaborate. Both models are, to our best knowledge, the first of their kind in this new research field of sustainability and provide significant insights for future exploration. View full abstract»

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  • Generation Scheduling Under a CO2 Emission Reduction Policy in the Deregulated Market

    Page(s): 386 - 397
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    CO2 emission reduction is important to the sustainable development of the electric power industry. In this paper, we propose a CO2 emission reduction policy for the thermal generation scheduling problem in the deregulated electricity market. By introducing a variable penalty factor, the policy is designed to apply a different penalty mode according to the range of the emissions quantity. The objective of the scheduling is to maximize the generation profits, which are determined by the electricity sales revenue, the generating cost, and the emissions penalty over the planning horizon. Using a piecewise linear function to express the variable penalty factor, the problem is formulated as a mixed integer nonlinear programming model. A variable splitting-based Lagrangian relaxation algorithm is developed to solve the problem. The numerical results for test cases of different sizes show that the proposed algorithm can find near-optimal solutions in a reasonable time. Additionally, the choice of the number of the penalty modes and the effectiveness of the proposed emission reduction policy are discussed. View full abstract»

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  • Strategic Closed-Loop Facility Location Problem With Carbon Market Trading

    Page(s): 398 - 408
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    The burgeoning environmental regulations are forcing companies to green their supply chains by integrating all of their business value-adding operations so as to minimize the impact on the environment. One dimension of greening the supply chain is extending the forward supply chain to collection and recovery of products in a closed-loop configuration. Remanufacturing is the basis of profit-oriented reverse logistics in which recovered products are restored to a marketable condition in order to be resold to the primary or secondary market. In this paper, we introduce a multiechelon multicommodity facility location problem with a trading price of carbon emissions and a cost of procurement. The company might either incur costs if the carbon cap, normally assigned by regulatory agencies, is lower than the total emissions, or gain profit if the carbon cap is higher than the total emissions. A numerical study is presented which studies the impact of different carbon prices on cost and configuration of supply chains. View full abstract»

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  • A Study of Product Weight and Collection Rate in Closed-Loop Supply Chains With Recycling

    Page(s): 409 - 423
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    In the context of closed-loop supply chains (CLSCs), we investigate two critical environmental factors of the product weight and the collection rate, as well as their environmental consequence of the landfill quantity. There are three closely related CLSC models consisting of a manufacturer who also recycles used products and a collector of the used products. The first CLSC is a centralized model with the vertical integration of the manufacturer and the collector. The second CLSC is a decentralized model with the manufacturer as the leader and the collector as the follower in a Stackelberg game. The third CLSC is a decentralized model with government subsidy and fee. In addition, we formulate a nonrecycling model as a benchmark for comparison. Under this modeling framework, this paper shows the impacts of supply chain centralization/decentralization as well as government subsidy and fee on these two factors and their environmental consequence in terms of the disposal quantity at landfills. Throughout the paper, numerous managerial insights and policy implications are provided. View full abstract»

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  • A Hybrid Manufacturing/Remanufacturing System With Random Remanufacturing Yield and Market-Driven Product Acquisition

    Page(s): 424 - 437
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    Remanufacturing has created considerable benefits to both industry and community. This paper generates insights into the acquisition management and production planning of a hybrid manufacturing/remanufacturing system. The acquisition quantity of the used products is stochastic and sensitive to the acquisition price, and the uncertain quality of the acquired used products leads to a random yield in the remanufacturing process. With such a market-driven acquisition channel and a random remanufacturing yield, it is shown how the acquisition pricing, remanufacturing, and manufacturing decisions can be coordinated in order to maximize the total expected profit. Sequential and parallel remanufacturing/manufacturing processes are considered in different cases. In each case, we use a stochastic dynamic programming to formulate and analyze the model, showing that the optimal policy is characterized by several critical values and functions. We derive conditions under which the firm should open/close the acquisition channel and utilize/discard the remanufacturing option. By comparing the two cases, we show that expediting the remanufacturing process will help the firm to better utilize the acquisition channel and the remanufacturing option, as the optimal acquisition price and remanufacturing quantity are both higher in the case of sequential processes. View full abstract»

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  • Integrating Sustainable Product and Supply Chain Design: Modeling Issues and Challenges

    Page(s): 438 - 446
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    Promoting sustainability within business operations requires sustainable products, processes, and system, i.e., sustainable supply chains (SSCs). To efficiently reduce environmental and societal impacts of supply chains (SCs) while maintaining continued profitability, it is necessary that the entire SC is designed and managed from a total life-cycle perspective considering coordination between product, process, and SC design. Coordinating product and SC design decisions play a critical role in improving the SSC's performance. The product design determines all its future costs, both in forward and reverse-flow, which in turn depend on the SC configuration such as the number and location of SC partners their capabilities and capacities. Therefore, coordinating sustainable product and SC design decisions requires consideration of all four product life-cycle stages and incorporating a closed-loop flow within the SC. The purpose of this paper is twofold. First, it emphasizes on the need and importance of coordinating product and SC design decisions in SSCs (through illustrative case studies) and the limitations of existing models from a SSC perspective. Second, the paper explains some of the challenges that need to be addressed while developing such holistic integrated models, provides key factors influencing their performance, and thereby proposes a framework to perform this coordination. View full abstract»

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  • Forthcoming engineering management related conferences

    Page(s): 447
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  • Journal subscription information

    Page(s): 448
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  • Papers to be published in future issues of IEEE Transactions on Engineering Management

    Page(s): 449 - 450
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  • May 2013 IEEE Transactions on Engineering Management readership survey

    Page(s): 451 - 452
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Aims & Scope

Management of technical functions such as research, development, and engineering in industry, government, university, and other settings. Emphasis is on studies carried on within an organization to help in decision making or policy formation for RD&E. 

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Meet Our Editors

Editor-in-Chief
Rajiv Sabherwal
Sam M. Walton College of Business, University of Arkansas