Improvements In Operating Performance Research Articles

Firefighting Water Tanker Commuting Accident: Case report on why it happened and how to manage

Road traffic accidents represent a significant global public health concern, and Malaysia is no exception. Within the Fire and Rescue Department of Malaysia (FRDM), similar issues have had detrimental impacts on health, financial loss, and service disruptions from 2016 to 2021. These challenges were highlighted by a recent accident involving a water tanker during a road test, described in this study according to qualitative data from the FRDM accident investigation report. The investigation revealed that human factor, as the active failure, was the primary cause of the accident. Response errors stem from a cascade of latent conditions initiated by inadequate resource management (i.e. provision of training and budget allocation). To address these challenges, the FRDM should adopt a comprehensive approach to address both latent conditions and active failures. This comprehensive approach ensures that both immediate concerns and root causes are addressed, leading to sustained improvements in safety and operational performance.

The role of existing shareholders in private equity placements in China

AbstractIn this article, we investigate how the participation of firms’ existing shareholders affects the pricing and valuation of private investments in public equity (PIPEs). Using a large sample of PIPEs issued by Chinese listed firms from 2006 to 2019, we find that the effective discount and long‐term buy‐and‐hold abnormal stock returns of PIPEs with existing shareholder participation are significantly higher than those with only new investor participation, after controlling for heterogeneous types of PIPE investors. However, the superior post‐PIPE stock performance of deals with existing shareholders is not driven by improved operating performance but by tunneling activities such as frequent dividend announcements, related‐party transactions, and positive earnings management during the lock‐up period. Our findings suggest that the effect of existing shareholders’ participation in private equity placements is more consistent with the tunneling hypothesis than the certification hypothesis. We document that the tunneling incentives are stronger when firms face greater financial constraints and can be mitigated when the firm's corporate governance is stronger.

ADVANCED BUSINESS ANALYTICS IN TEXTILE & FASHION INDUSTRIES: DRIVING INNOVATION AND SUSTAINABLE GROWTH

This research paper explores the strategic implementation of advanced business analytics within EcoFashions Ltd., a mid-sized company in the textile and fashion industry. The central question it addresses is: How can a specific company leverage advanced analytics in the fashion sector for sustainable growth? Through a qualitative case study approach, the research examines the strategic implementation of analytics at EcoFashions to enhance operational efficiency, drive innovation, and promote sustainability. The findings reveal that the integration of analytics at EcoFashions led to a 25% reduction in material waste and a 15% increase in production efficiency, while also fostering product innovation responsive to market trends. These outcomes not only highlight the potential of business analytics to transform traditional practices within the fashion industry but also suggest that other firms can adopt similar strategies to achieve substantial improvements in sustainability and operational performance. The paper concludes with reflections on the limitations of a single case study and proposes directions for future research to validate and expand upon these findings across the broader industry. This study contributes to understanding how data-driven strategies can facilitate significant sector-wide advancements in sustainability and innovation in the textile and fashion industries.

INTEGRATING ENTERPRISE RISK MANAGEMENT (ERM): STRATEGIES, CHALLENGES, AND ORGANIZATIONAL SUCCESS

Implementing Enterprise Risk Management (ERM) is pivotal for organizations striving to navigate and excel within increasingly complex and volatile business environments. This paper explores the core principles of ERM and underscores its crucial role in achieving organizational objectives by enhancing decision-making, risk awareness, and resilience. It highlights the benefits and challenges of ERM implementation, with a strong emphasis on the empowering role of leadership in this process. It also emphasizes the necessity for strategic resource allocation, and effective integration into organizational processes. Additionally, the paper examines key factors that contribute to the success of an ERM program, such as adaptability and continuous improvement. Through real-world case studies, the paper illustrates how successful ERM implementation can significantly benefit organizations, demonstrating quantifiable improvements in operational performance and strategic outcomes. These discussions aim to provide a comprehensive understanding of the importance of ERM in modern business practices, advocating for its widespread adoption and continuous evolution to meet emerging business challenges.

Enhancing Efficiency and Security in MTC Environments: A Novel Strategy for Dynamic Grouping and Streamlined Management

This study presents a new strategy to improve security and efficiency in Machine-Type Communication (MTC) networks, addressing the drawbacks of the existing Adaptive Hierarchical Group-based Mutual Authentication and Key Agreement (AHGMAKA) protocol. The AHGMAKA protocol, crucial for securing communication within groups of devices with limited resources, has been found to cause significant operational delays and inefficiencies. Our proposed solution integrates advanced cryptographic methods, including an optimized Authenticated Message Authentication Code (AMAC) and lightweight encryption, sophisticated optimization algorithms for dynamic grouping, and an efficient, lightweight group management protocol. It also introduces adaptive network management strategies to customize performance according to the needs of MTC networks. The effectiveness of this approach has been validated through empirical analysis, showing considerable improvements in operational performance and energy efficiency. These improvements mark a significant step toward achieving an optimal balance between efficiency and security for MTC networks. However, the research acknowledges ongoing challenges, including the trade-off between security and efficiency and the issue of compatibility with older devices, suggesting these as areas for future study. The paper outlines potential research paths, including using machine learning for better group management, adopting post-quantum cryptographic methods, applying hardware acceleration, and pushing to standardize these technologies. This work significantly advances the field of secure and efficient communication in MTC, a critical component of the growing Internet of Things (IoT) landscape, setting the stage for future breakthroughs.

Exploring the effect of dynamic capabilities on operational excellence, moderated by environmental dynamism in the apparel industry

PurposeThe effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.Design/methodology/approachWe followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.FindingsDynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.Research limitations/implicationsThis study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.Originality/valueWe generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.

Investigating the impact of smart manufacturing on firms' operational and financial performance

PurposeSmart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms' willingness to invest in SM is limited by insufficient or inconclusive evidence on its performance-related benefits. To close this gap, this paper develops and tests a model linking SM adoption to firms' financial performance. Improvements along the four dimensions of operational performance (i.e. cost quality, delivery and flexibility) mediate this relation.Design/methodology/approachThis study follows an empirical research approach. In particular, survey data from 234 automotive component suppliers are analyzed via covariance-based structural equation modeling to explore the link between SM adoption and operational performance. Survey data are then matched with secondary data from balance sheets of 81 firms to investigate the impact of SM on financial performance via partial least square structural equation modeling.FindingsFindings highlight that adoption of SM results in improvements in cost, quality, delivery performance, thus suggesting that SM is a mean to overcome performance trade-offs. Improvements in operational performance enabled by SM do not give rise to superior financial performance, thus implying that SM might support firms in maintaining the competitive position in the market, but could be insufficient to generate higher margin.Originality/valueResults have implications for SM research and for manufacturing executives engaged in the adoption of SM, as they provide a detailed analysis of the impact of SM on operational performance and clarify the effect that SM adoption has on financial performance.

Corporate Governance and Related Party Transactions in Global Supply Chains

Problem definition: As related party transactions (RPTs) increase in global supply chains, understanding the impact of corporate governance on such transactions becomes crucial for businesses. RPTs often lead to operational diversion due to power disparities between parent and its subsidiaries. In this study, we explore how operational diversion in RPTs within multinational firms is affected by the roles of foreign subsidiaries and corporate governance mechanisms. Methodology/results: Using a unique data set on RPTs of Korean multinational firms from 2006 to 2013, we compare the performance of multinational firms engaging in RPTs with two types of foreign subsidiaries: vertical and horizontal. We conduct our empirical analysis based on the adoption of International Financial Reporting Standards (IFRS) in Korea in 2011, which acts as a policy shock affecting corporate governance and deterring operational diversion. Our results show that the improvement in operational performance of a multinational firm following the IFRS adoption is more significant when the parent firm engages in transactions with vertical subsidiaries compared with horizontal ones. We further show that strong corporate governance mechanisms, such as internal governance, institutional ownership, and large shareholders, play a crucial role in restraining operational diversion in RPTs involving vertical subsidiaries. Managerial implications: The implications of our study extend to shareholders and auditors, highlighting the importance of prioritizing monitoring efforts concerning a parent firm’s RPTs with vertical subsidiaries, especially when corporate governance mechanisms are weak. In contrast, RPTs with horizontal subsidiaries are relatively robust against operational diversion, making them a natural deterrent to such malpractices. Funding: This work was supported by the Institute of Management Research at Seoul National University, the Hankuk University of Foreign Studies Research Fund [2023], and the Research Fellowship Fund of the Sangnam Institute of Management, Yonsei University [2020-22-0007]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0372 .

Construction of robust solid-electrolyte interphase via electrode additive for high-performance Sn-based anodes of sodium-ion batteries

Alloy-based Sn anode for sodium-ion batteries has attracted tremendous attention due to its low working voltage, high specific capacity, and good availability. Its application is hindered, however, by inferior cycling stability due to its huge volume changes and unstable solid-electrolyte interphase (SEI) film. Herein, tetraphenylphosphonium bis(trifluoromethanesulfonyl)imide (TPPTFSI) is introduced into the electrode and spontaneously adsorbed on the surfaces of commercial Sn microparticles (μ-Sn) to improve the electrochemical performance of the Sn anode. In the first cycle, the TPP+ component of TPPTFSI decomposes to form an organic component of the SEI film, thereby enhancing its flexibility. Meanwhile, the TFSI− component is converted into an inorganic constituent of the SEI, improving its robustness and ionic conductivity. Therefore, the cycling performance of the μ-Sn is enhanced significantly. The modified electrode, TPPTFSI-Sn, delivers a capacity of 619.7 mAh g−1 after 2000 cycles at 2.0 A g−1, while the control sample can only survive for 30 cycles. Importantly, the full cell also exhibits excellent performance, including rate performance and cycling stability. Its simple operation and remarkable electrochemical performance improvement indicate the promising prospects of this strategy for advanced electrodes in SIBs.

Effect of customer concentration on firms’ operating performance during the COVID-19 pandemic

This study investigated the effect of a supplier’s customer concentration level on its operating performance during the COVID-19 pandemic. Using a large sample of publicly listed U.S. manufacturing firms, we measured abnormal changes in operating performance of the sample firms across two distinct stages of the pandemic: the disruption phase ( N = 2 , 557 ) and the recovery phase ( N = 2 , 454 ). Our regression results show that the effect of customer concentration varied depending on the phase of the pandemic. Suppliers with a concentrated customer base performed worse during the first year of the pandemic when the global supply chain experienced significant disruptions. During this disruption, firms with lower degrees of customer concentration managed their supply chain risks more effectively, resulting in higher operating performance than their benchmark firms. However, when firms entered the recovery phase, we found that a firm’s concentration level had the opposite effect on its operating performance. During the recovery phase, firms with concentrated customer bases could coordinate and collaborate more effectively with major customers, leading to improved operating performance. Based on our findings, we discuss the theoretical and managerial implications of managing the supply chain structure during its disruption and recovery.

Plant Information Management System Using OSIsoft PI System: A Case Study of Cilacap Power Plant Units 1 and 2

In the dynamic industrial sector, the ability to combine and manage data from various sources is essential. This study focuses on the utilization of the PI System to integrate operational data from multiple data sources at power plants, facilitating data driven decision making and enhancing operational efficiency. The application of the PI System in collecting data from Distributed Control Systems (DCS) and asset management systems like Maximo is examined, as well as its potential for integrating data from other power plant units. The study utilizes systems analysis methods to understand the potential of data integration in improving operational visibility and control. Findings from testing reveal that effective data integration can extend monitoring and management capabilities, indicating an overall improvement in operational performance. This study contributes to the literature on industrial data management by demonstrating the effective use of the PI System as a comprehensive tool for integrating data from various systems within power plants. It showcases the system's adaptability in enhancing operational decision-making and providing a cohesive platform for real-time performance monitoring. Additionally, the research offers insights into the practical application of systems analysis methods in the context of power plant operations, contributing to the ongoing discourse on digital transformation in the energy sector.

Enhancing Control Room Operator Decision Making

In the dynamic and complex environment of industrial control rooms, operators are often inundated with numerous tasks and alerts, leading to a state known as task overload. This condition can result in decision fatigue and increased reliance on cognitive biases, which may compromise the decision-making process. To mitigate these risks, the implementation of decision support systems (DSSs) is essential. These systems are designed to aid operators in making swift, well-informed decisions, especially when their judgment may be faltering. Our research presents an artificial intelligence (AI)-based framework utilizing dynamic influence diagrams and reinforcement learning to develop a powerful decision support system. The foundation of this AI framework is the creation of a robust, interpretable, and effective DSS that aids control room operators during critical process disturbances. By incorporating expert knowledge, the dynamic influence diagram provides a comprehensive model that captures the uncertainties inherent in complex industrial processes. It excels in anomaly detection and recommending optimal actions. Furthermore, this model is improved through a strategic collaboration with reinforcement learning, which refines the recommendations to be more context-specific and accurate. The primary goal of this AI framework is to equip operators with a live, reliable DSS that significantly enhances their response during process upsets. This paper describes the development of the AI framework and its implementation in a simulated control room environment. Our results show that the DSS can improve operator performance and reduce cognitive workload. However, it also uncovers a trade-off with situation awareness, which may decrease as operators become overly dependent on the system’s guidance. Our study highlights the necessity of balancing the advantages of decision support with the need to maintain operator engagement and understanding during process operations.

The Influence of Total Quality Management, Lean Manufacturing, and Entrepreneurial Orientation on Operating Performance in Semarangan Batik Entrepreneurs in Semarang City

Operations management is very important for the production process, the performance it produces is very important for the sustainability of the company. Further research is needed because of the many production problems faced by batik craftsmen in Semarang City. This study aims to study how the application of Total Quality Management, entrepreneurial orientation, and Lean Manufacturing impacts on operating performance. This study used questionnaires as a data collection method. Simple random sampling was used to select the sample, and 59 people were selected. Multiple linear regression analysis was used to evaluate the effect of the independent variable on the dependent variable of the study. The results showed that total quality management improved operating performance (H1 received). The second hypothesis says Lean Manufacturing improves operations performance is accepted, and the third hypothesis says entrepreneurial orientation improves operations performance is accepted. The results of the coefficient of determination test show that the three independent variables affect operating performance by 53%. It is recommended to Semarang batik craftsmen in Semarang City to provide training to their employees, improve their production methods, and reduce their dependence on intermediaries in sales.

Localizing weather forecasts for enhanced heat load forecast accuracy in urban district heating systems

ABSTRACT Weather forecasts are essential for district heating (DH) utility operations as they prepare the utility for future consumption, thus ensuring optimal operation by supplying sufficient heat while keeping costs low. Weather forecasts are usually converted into heat demand forecasts, which are used for production planning and control of the temperatures in the network. Hence, increasing the accuracy of weather forecasts will lead to improvements in the system's operational performance. However, numerical weather predictions (NWPs) are computed over the earth as grid values, and NWPs are designed for rural areas, not urban areas. Therefore, we propose to localise the weather forecasts to the urban environment by calibrating them using Model Output Statistics. We show that localising weather forecasts (removing the bias) leads to enhanced accuracy in the heat demand forecasts. In our case study, localised weather forecasts lead to an error reduction between 1.5% and 2.5% when compared to forecasts using uncalibrated NWPs.

The Impact of Rapid Handpump Repairs on Diarrhea Morbidity in Children: Cross-Sectional Study in Kwale County, Kenya.

Handpumps are used by millions of people as their main source of water. Although handpumps represent only a basic form of water provision, there have been continuous efforts to improve the performance of these systems as they are likely to remain in use for many years to come. The introduction of a professional maintenance service in southern Kenya has shown an order of magnitude improvement in operational performance over community-based management, with 90% of handpump faults repaired within 3 days of being reported. One driver behind these efforts is the assumption that a more reliable water supply will lead to a reduction in water-related disease. However, it is not clear if operational improvements lead to health gains. Despite limited empirical evidence, some modeling studies suggest that even short periods of drinking contaminated water can lead to disproportionate negative health impacts. The aim of this study was to assess whether the improvements in operational performance from the rapid professional maintenance of rural handpumps lead to improved household health outcomes. From a sample of households using handpumps as their primary water source in Kwale County, Kenya, we measured the 2-week prevalence of World Health Organization-defined diarrhea in children, reported by the adult respondent for each household. We compared the rates before and after a period during which the households' handpumps were being professionally maintained. We then conducted a cross-sectional analysis, fitting logistic regression models with reported diarrhea as the dependent variable and speed of repair as the independent exposure of interest, adjusting for household socioeconomic characteristics; dwelling construction; and Water, Sanitation, and Hygiene (WASH)-related factors. We fitted an additional model to examine select interactions between covariates. Reported diarrhea in children was lower in households whose pumps had been repaired within 24 hours (adjusted odds ratio 0.35, 95% CI 0.24-0.51). This effect was robust to the inclusion of multiple categories of covariates. No reduction was seen in households whose pump repairs took more than 24 hours. Analysis of interaction terms showed that certain interventions associated with improved WASH outcomes were only associated with reductions in diarrhea in conjunction with socioeconomic improvements. Only pump repairs consistently made within 24 hours of failure led to a reduction in diarrhea in the children of families using handpumps. While the efficacy of reduction in diarrhea is substantial, the operational challenges of guaranteeing same-day repairs limits the effectiveness of even best-in-class pump maintenance. Maintenance regimes that cannot bring handpump downtimes close to zero will struggle to generate health benefits. Other factors that reduce diarrhea prevalence have limited effect in isolation, suggesting that WASH interventions will be more effective when undertaken as part of more holistic poverty-reduction efforts.

Experimental investigation for the operational performance improvement of cryogenic piston-type pump using subcooling effect for liquid hydrogen stations

This paper investigates the impact of subcooling degree and exhaust pressure on the performance of a high-pressure piston pump for pressurizing cryogenic liquid. We fabricate a lab-scale cryogenic liquid pump, conduct experiments with liquid nitrogen, and observe the significant effect of subcooling changes on the pump performance. The lab-scale pump achieves up to 30 bar of exhaust pressure and up to 45.4 g exhaust mass per cycle. This paper introduces the concept of duty cycle for the exhaust mass as a measure of pump performance. The results show that as the subcooling degree and the exhaust pressure increase, the duty cycle and the exhaust mass also increase, improving the pump performance. However, the increase in performance does not happen proportionally, and an optimal subcooling degree must be selected. This paper establishes a generalized computational model to predict the pump performance, achieving the mean absolute errors of 1.8 bar and 0.3 g/s in pressure and mass flow rate, respectively. The model can predict the exhaust mass during one stroke cycle of the pump with an approximation error of 10 %. In addition, the model predicts that pressurizing liquid hydrogen to 900 bar requires subcooling degree and its duty cycle cannot reach 100 % by reduction of specific volume. The findings suggest that subcooling can be used to enhance cryogenic liquid pump performance, and the optimal subcooling degree can be determined during the design of piston pumps to achieve high pressure.

Does Privatisation Improve Financial and Operating Performance of a Firm? The Case of Tanzania Breweries Ltd

Does Privatisation Improve Financial and Operating Performance of a Firm? The Case of Tanzania Breweries Ltd

The effect of industrial robot adoption on firm value: Evidence from China

This study examines the effect of automated production technology on firm value. Examining evidence from listed Chinese manufacturing companies from 2012 to 2019, our findings show that industrial robot adoption increases firm value, and the effect is more pronounced in labor-intensive industries, private companies, and firms with executive shareholding. Possible mechanisms include operating performance improvement, effective tax rate reduction, net profit margin increase, and agency cost mitigation. This study contributes to a comprehensive evaluation of the overall impact of automation on firms and deepens the understanding of the productivity innovation drivers of firm value.

A Fuzzy-Based Proportional–Integral–Derivative with Space-Vector Control and Direct Thrust Control for a Linear Induction Motor

In this study, the analysis and control of a multi-phase linear induction motor loaded with a variable mechanical system are carried out. Mathematical models are established, and simulation results are analyzed for an improved proportional–integral–derivative controller with closed-loop vector control for PLIM. To make the PID controller more responsive to load thrust disturbances, a fuzzy PID load thrust observer was developed. The FPID is similarly based on space-vector modulation DTC technology to regulate the PLIM’s speed, flux, and thrust. The FPID output is used to calculate the reference thrust force, which is compared to the actual thrust value to calculate the second error. To maintain the linear speed of the PLIM at the specified reference values and at different load values, the FPID controller settings are adjusted. Four indicators were used to compare the capabilities of the FPID controller with those of the conventional PID controller in order to evaluate the performance of PLIM in both cases. These indices represent the individual SSE for each operational phase and the total SSE for the entire loading period. According to the simulation results, the FPID works better than a regular PID when used to adjust the operation of DTC-SVM to drive a PLIM to improve the overall system performance. The simulation results using MATLAB Simulink for a PLIM-drive system show that the proposed FPID control provides improved control behavior and operating performance with fast and accurate speed tracking.

Assessing the Role of Strategic Project Management in Enhancing Operational Efficiency and Competitive Performance of Fashion Industry in Italy

This study examines the impact of strategic project management on operational efficiency and competitive performance within Italy's fashion industry. The purpose was to ascertain how strategic project management practices influence the operational effectiveness and market competitiveness of fashion businesses in a country renowned for its sartorial excellence. Anchored by the research problem that Italian fashion companies face increasing global competition and operational challenges, this inquiry adopted a mixed-methods approach. Quantitative data were gathered from 150 fashion firms across Italy, utilizing structured surveys to measure project management strategies and performance metrics. In parallel, qualitative interviews with 30 industry experts provided deeper insights. Findings indicated a significant correlation between strategic project management and enhanced operational efficiency, with statistics revealing that firms employing strategic project management were 35% more efficient in resource utilization. Moreover, these firms exhibited a 40% better market performance compared to those with ad-hoc or undeveloped project management approaches. The conclusion drawn from the study is that a rigorous strategic project management framework is essential for Italian fashion firms to thrive in the competitive global marketplace. Recommendations included the adoption of bespoke strategic project management training programs, investment in project management software tailored to the unique needs of fashion enterprises, and the integration of agile methodologies to foster adaptability and innovation. The study suggests that these measures could lead to sustained improvements in operational and competitive performance for the Italian fashion industry. Keywords: Strategic Project Management, Operational Efficiency, Competitive Performance, Fashion Industry, Italy