Bret Wagner

Using FMEA for Supply Chain Risk Management

Managing Supply Chain Risk, 2015

Supply chain risk management (SCRM) is a key component of not only supply success but firm succes... more Supply chain risk management (SCRM) is a key component of not only supply success but firm success as well. Supply chain risks can be mitigated to a great extent by the qualification and selection of the appropriate supplier. The purpose of this study was to identify how companies manage supply chain risks, with a particular focus on the use of Failure Mode Effects and Analysis (FMEA). The research was largely exploratory, so a purposeful sample was used. The research questions were explored in two steps. First, a survey was sent to of 67 perceived supporters of SCRM. Second, after review of the survey data, respondents who indicated they had used FMEA as part of a supplier qualification process were contacted. This research first uses survey data to determine that FMEA is seldom used for supplier risk assessment, but provides a powerful tool for proactive SCRM. A case study is then examined to determine that many of the fundamental principles of FMEA can be applied to reduce risk in supplier selection. This study shows that the supply chain can actually be managed in much the same way as product and process defects. This paper demonstrates that by showing how FMEA can play a major role in the process of managing risks through supplier assessment and selection.

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A production scheduling model for repetitive manufacturing systems

Using FMEA for Supply Chain Risk Management

Managing Supply Chain Risk, 2015

Supply chain risk management (SCRM) is a key component of not only supply success but firm succes... more Supply chain risk management (SCRM) is a key component of not only supply success but firm success as well. Supply chain risks can be mitigated to a great extent by the qualification and selection of the appropriate supplier. The purpose of this study was to identify how companies manage supply chain risks, with a particular focus on the use of Failure Mode Effects and Analysis (FMEA). The research was largely exploratory, so a purposeful sample was used. The research questions were explored in two steps. First, a survey was sent to of 67 perceived supporters of SCRM. Second, after review of the survey data, respondents who indicated they had used FMEA as part of a supplier qualification process were contacted. This research first uses survey data to determine that FMEA is seldom used for supplier risk assessment, but provides a powerful tool for proactive SCRM. A case study is then examined to determine that many of the fundamental principles of FMEA can be applied to reduce risk in supplier selection. This study shows that the supply chain can actually be managed in much the same way as product and process defects. This paper demonstrates that by showing how FMEA can play a major role in the process of managing risks through supplier assessment and selection.

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Appendix A: Research Questionnaire Results

Scrimmage! Teaching quantitative literacy through a multidimensional simulation

The International Journal of Management Education, 2019

Researchers and employers both herald the importance of quantitative literacy among undergraduate... more Researchers and employers both herald the importance of quantitative literacy among undergraduates in business schools. Despite this, the ability to effectively train students in quantitative literacy is difficult due to its multidisciplinary nature, everchanging accreditation recommendations, and administrative restrictions faced by today's business schools. In this paper, we explore the use of the ScrimmageSIMTM simulation in a Midwestern U.S. business school across two semesters one year apart. We demonstrate qualitatively via student comments and quantitatively via course evaluations the value of this simulation in increasing the quantitative literacy of undergraduate business students. Recent technological advances and digitization have drenched organizations in an unprecedented deluge of quantitative data (e.g., Rienzo & Chen, 2018). These developments bring renewed urgency to effectively training undergraduate students in quantitative literacy. In this paper we use the definition from Gal (1997) for numeracy as our definition of quantitative literacy: "An aggregation of skills, knowledge, beliefs, dispositions, habits of mind, communication capabilities, and problem solving skills that people need to autonomously engage in and effectively manage situations in life and at work that involve numbers, quantitative or quantifiable information, or textual information that is based on or has embedded in it some mathematical elements." (p. 39). Simply put, quantitative literacy is the ability to understand and use numbers in a given context. Both scholars and recruiters contend that quantitative literacy is now a primary skill that enables professional success (McClure & Sircar, 2008). Indeed, the National Association of Colleges and Employers' Job Outlook 2017 Report summarizes attributes employers seek in graduates. As illustrated in Table 1, more than half of employers report a desire for candidates to have analytical/quantitative skills. Further, developing a course that encompasses Gal's definition of quantitative literacy will address the majority of the attributes in Table 1. Despite its importance, teaching quantitative literacy can be challenging. One primary challenge is that the effectiveness of quantitative literacy in organizational contexts often requires incorporation of context into one's analysis of quantitative data. In other words, while quantitative skill like regression is important in itself, quantitative literacy in organizations requires consideration of contextthe organization's strategy, its functional areas, and other organizational activitiesin order to be effective. One mechanism to make the surrounding organizational context vivid and salient to quantitative analysis is through simulations. Indeed, the hallmark of a simulation is to stimulate and alter the environment surrounding business decisions. Yet, to our knowledge, there are few examples of how a simulation can be used to teach quantitative literacy. In light of these observations, the purpose of this

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The Benefits of Simulated Coursework in Western Michigan University’s Undergraduate Supply Chain Program

Creative Education, 2017

The demand for qualified supply chain professionals is growing more and more each year. Universit... more The demand for qualified supply chain professionals is growing more and more each year. Universities across the United States are working to prepare students entering the supply chain field as best they can. Experiential learning through simulated environments is one of the ways schools are working to get students job-ready day 1. The Integrated Supply Management program at Western Michigan University utilizes a simulation in the Production Management and Control course to give students inventory control and demand planning experience to better prepare them for their full-time careers. This paper describes the current skill set demands of new college graduates, and how experiential coursework attempts to develop those skills. It also describes the simulated course required by the supply chain program.

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ISO 31000:2009 Enterprise and Supply Chain Risk Management: A Longitudinal Study

American Journal of Industrial and Business Management, 2013

This research attempts to fill two recently identified gaps in Supply Chain Risk Management (SCRM... more This research attempts to fill two recently identified gaps in Supply Chain Risk Management (SCRM) research, specifically the lack of a common framework and limited empirical research. This research first attempts to determine if ISO 31000:2009 provides a foundation to advance SCRM research by standardizing the SCRM research framework, terms, and risk treatment categories. Secondly, it attempts to determine if ISO 31000:2009 is a useful framework for managers to link SCRM to enterprise risk management (ERM) when executing SCRM. Currently, there is no research that explicitly links SCRM to the ISO 31000:2009 ERM standard. In this study, longitudinal survey data were analyzed, and follow-up discussions with managers were used to achieve the research purpose. It was determined that current SCRM research frameworks have similarities with each other, but they also diverge to some extent. The ISO 31000:2009 framework encompasses existing SCRM frameworks, but it is more exhaustive than that, which includes the need for developing a strategic context for risk management and for ongoing performance monitoring. It is suggested that ISO 31000:2009 provides a foundation for extending and advancing future SCRM research. It was also found that firms increasingly recognize the importance of systematic SCRM, but SCRM integration and skills are lacking. Topics for future research are proposed, including for example using ISO 31000:2009 as a research foundation, potential outsourcing of SCRM, appropriate organizational structure for SCRM, deployment of IT, and SCRM return on investment.

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Integration of ISO 31000:2009 and Supply Chain Risk Management

American Journal of Industrial and Business Management, 2013

Supply chain risk management (SCRM) can provide companies with a long-term competitive advantage,... more Supply chain risk management (SCRM) can provide companies with a long-term competitive advantage, particularly if it is integrated with enterprise risk management (ERM). Current SCRM research frameworks do not explicitly examine this integration, potentially hindering a deeper understanding of SCRM. This research uses survey data and follow-up interviews to suggest that ISO 31000:2009 provides a foundation for advancing future SCRM research, and to more successfully execute SCRM. It is also determined that ISO 31000:2009 encompasses existing SCRM frameworks, but is more exhaustive. It includes two critical steps generally omitted from SCRM frameworks: 1) developing a strategic context for SCRM, and 2) performance monitoring. Finally, it was found that firms recognize the importance of SCRM, but SCRM integration and skills are lacking.

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Teaching Integrated Business Processes via ERP Configuration

Enterprise Systems Education in the 21st Century

The business world has recognized the importance of managing business processes rather than funct... more The business world has recognized the importance of managing business processes rather than functions. Business education has begun to embrace this transformation, although the organizational barriers between departments in most business schools have limited the suc-cess of teaching business from a process-oriented perspective. ERP technology provides an opportunity to illustrate the management of integrated business processes. One approach to using ERP software to teach business processes is through a dedicated con?guration class. In this class structure, students con?gure an ERP system to manage the basic business pro-cesses of a small company. Because of the integrated nature of ERP systems, students must con?gure the system in a number of functional areas — accounting, operations, sales, etc. — many of which are not in a student’s major. The necessity of con?guring an ERP system in a number of functional areas illustrates the importance of having a background in all basic busine...

A two-stage least cost credit scoring model

Annals of Operations Research

A least cost two-stage credit scoring model is developed and evaluated. The model is two-stage in... more A least cost two-stage credit scoring model is developed and evaluated. The model is two-stage in the sense reflected by existing practice. That is, based on preliminary information, a decision is made to grant credit, deny credit, or to seek additional information before making a decision. If additional information is sought, the decision goes to the second stage, where a final decision to grant or deny credit is made. The model is based on an integer programming formulation that attempts to minimize the total combined cost of granting credit to likely defaulters, denying credit to likely payers, and for obtaining all of the information that is required to make the decisions.

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Supply Chain Risk Management within the Context of COSO’s Enterprise Risk Management Framework

Journal of Business Administration Research, 2013

This study examined how companies identify and manage supply chain risks and how those actions re... more This study examined how companies identify and manage supply chain risks and how those actions relate to systemic enterprise risk management (ERM). The structure, implementation, and maintenance of supply chain risk management (SCRM) systems and tools are described, and the potential integration of SCRM with ERM is explored. The ERM framework proposed by The Committee of Sponsoring Organizations (COSO) of the Treadway Commission (COSO, 2004) is used to examine such integration. Data from 46 firms were analyzed to identify which factors affect the decision to develop an SCRM system and how the resultant systems compare to an ERM system. It is suggested that explicitly linking SCRM with ERM will more readily advance research regarding these important issues and support supply managers in their efforts to develop SCRM strategies, garner the necessary resources, and execute SCRM at their firms.

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The impact of lot splitting on due date performance

Journal of Operations Management, 1994

ABSTRACT

A genetic algorithm solution for one-dimensional bundled stock cutting

European Journal of Operational Research, 1999

This paper discusses a one-dimensional cutting stock problem in which lumber is cut in bundles. T... more This paper discusses a one-dimensional cutting stock problem in which lumber is cut in bundles. The nature of this problem is such that the traditional approaches of linear programming with an integer roundup procedure or sequential heuristics are not eective. A good solution to this problem must consider trim loss, stock usage and ending inventory levels. A genetic search algorithm is proposed and results compared to optimal solutions for an integer programming formulation of the problem.

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ERP Simulation Game with SAP ERP: Manufacturing Game (7th edition)

A search heuristic for the sequence-dependent economic lot scheduling problem

European Journal of Operational Research, 2002

... near-optimum solution. Bourland and Yano (1997) concluded that the zero-switch rule performe... more

The Production of Several Items in a Single Facility with Linearly Changing Demand Rates

Decision Sciences, 2002

In this paper we extend the ELSP model to allow for linearly changing demand rates over a fixed p... more In this paper we extend the ELSP model to allow for linearly changing demand rates over a fixed planning horizon. This extension of the ELSP research provides a model that can be used in coordinating the production and marketing planning activities in a firm. The model allows the user to evaluate the impact of changes in product demand on production costs and customer service. We solve the model using a standard nonlinear programming package (MINOS) and show through examples based on actual production data how the model can be used to support coordinated production and marketing planning.

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Discrete Sequential Search with Group Activities

Decision Sciences, 2001

Equipment failures can have significant implications in terms of cost and customer satisfaction. ... more Equipment failures can have significant implications in terms of cost and customer satisfaction. Reducing the time required to find the cause of a failure can provide large cost savings and help preserve customer goodwill. Single-item discrete sequential search models can be used to sequence the tasks in diagnostic search to minimize the expected time required to find the cause of the failure. We increase the utility of the single-item discrete sequential search model by developing a formulation that includes simple precedence relationships as well as sequence dependent relationships defined by group activities. This formulation can be applied to a number of other problems including determining the sequence for multiple quality control tests on an item, scheduling oil well workovers to maximize the expected increase in oil production, and sequencing tasks in a research project where there is a technological risk associated with each task.

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Influence of workload imbalances on the need for worker flexibility

Computers & Industrial Engineering, 2009

The benefits of worker flexibility have been well recognized both in practice and in academic jou... more The benefits of worker flexibility have been well recognized both in practice and in academic journals. Prior literature suggests that most of the benefits of worker flexibility accrue with a moderate level of cross training. Because of factors such as MRP planning systems, seasonality and budgeting cycles, many companies experience workload imbalances that are more structured than the workload variability modeled in prior studies. Using factors based on industry examples we model structured workload imbalances. Our premise is that workload imbalances create the ''need" for worker flexibility, while the available work center capacity in the shop influences the extent to which worker flexibility can be utilized to counter the workload imbalances. Our results confirm that under low workload imbalance conditions, most benefits associated with worker cross training are obtained with a moderate level of training. However, in the presence of high workload imbalances we find that more extensive worker cross training significantly enhances shop performance. A sufficient level of work center capacity is required to realize the benefits of extensive cross training in countering high workload imbalances.

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A Practical Procedure for Developing p-Charts

Economic Quality Control, 2006

The question of how to determine an appropriate sample size n for an attribute control chart has ... more The question of how to determine an appropriate sample size n for an attribute control chart has been the subject of a number of research papers. Unfortunately, this stream of research has neither produced tools that are easy to understand, nor it does provide a manager with a good understanding of the tradeoffs involved by the sample size decision. In this paper, we propose a practical method of determining an appropriate sample size that allows the manager to evaluate the tradeoffs between the ability to detect an out-of-control process, the probability of generating a "false alarm" and the sample size (which will determine the cost of implementing the sampling plan).

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Influence of workload imbalances on the need for worker flexibility

by Darwin Davis and Bret Wagner

Computers & Industrial Engineering, 2009

The benefits of worker flexibility have been well recognized both in practice and in academic jou... more The benefits of worker flexibility have been well recognized both in practice and in academic journals. Prior literature suggests that most of the benefits of worker flexibility accrue with a moderate level of cross training. Because of factors such as MRP planning systems, seasonality and budgeting cycles, many companies experience workload imbalances that are more structured than the workload variability modeled in prior studies. Using factors based on industry examples we model structured workload imbalances. Our premise is that workload imbalances create the ''need" for worker flexibility, while the available work center capacity in the shop influences the extent to which worker flexibility can be utilized to counter the workload imbalances. Our results confirm that under low workload imbalance conditions, most benefits associated with worker cross training are obtained with a moderate level of training. However, in the presence of high workload imbalances we find that more extensive worker cross training significantly enhances shop performance. A sufficient level of work center capacity is required to realize the benefits of extensive cross training in countering high workload imbalances.

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