• International Journal of Quality Innovation
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• v.8 no.1
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• pp.1-14
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• 2007

The Six Sigma and Lean Production methodologies suggest that creating value for customers is the objective of a production process or an organisation. In the production context, "added value" dominates the discussion about the creation of value to customers. However, "added value" is often only defined conceptually or discussed at a strategic level, and the link between added value and customer value has not yet been well conceptualised. Therefore, the purpose of the paper is to develop a methodology to measure added value in order to complement the existing performance measures in Six Sigma and Lean Production by conceptualising the link between customer value and added value. The conceptual link "confirms" that quality, time, and costs are the elements of added value, which are transformed into a metric to express customer value. The implementation of the metric recommends the adoption of Lean (Six) Sigma and Lean Accounting (Activity Based Costing), which thus implies that "leanness" is an important "feature" of added value.

• East Asian Journal of Business Economics (EAJBE)
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• v.5 no.1
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• pp.10-26
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• 2017

This paper explains the concept of Economic Value Added (EVA) that is gaining popularity in India. We also examine whether EVA is a superior performance measure, both for corporate disclosure and for internal governance. Of late, companies in India have started focusing on shareholders wealth creation by adopting value-based models for measuring shareholder value that helps to align managerial decision-making with the firm preferences. In recent years, the EVA framework is gradually replacing the 'traditional' measures of financial performance on account of its robustness and its immunity from 'creative' accounting. Even though some leading Indian companies have already joined the band wagon of their American counterparts in adapting the EVA-based corporate performance systems, many other are hesitating as there is no strong evidence that the EVA system works in India. Till now, EVA disclosures are "not mandatory for the Indian companies." Also, we examine the value-creation strategies of selected Indian companies by analyzing whether EVA better represents the market-value of these companies in comparison to conventional performance measures. The study indicates that "there is no strong evidence to support Stern Stewart's claim that EVA is superior to the traditional performance measures in its association with MVA." As part of this study, we have also extensively surveyed the EVA disclosures in the Annual Reports made by the same sample group of 500 corporations from India.

• The Journal of Industrial Distribution & Business
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• v.6 no.2
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• pp.5-11
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• 2015

Purpose - This research investigates the effect of disclosure quality with two main components, reliability and timeliness, on economic value added in Iran. Research design, data, and methodology - The sampling includes 170 Tehran Stock Exchange listed companies from 2008-12. Multiple regression analysis was applied to test the hypotheses and estimates of the coefficients. Firm size and return on assets were the control variables. Results - The results show that timeliness of information has a positive impact on economic value added. We did not find any significant relationship between disclosure quality and reliability of information and economic value added. The regressed model shows that there is no significant association between firm size and economic value added. The results also show that there is a positive association between return on assets and economic value added. Conclusions - Theoretically, timely information is effective in decision-making. This study shows that timeliness of information has positive effect on the creation of economic value added. However, disclosure quality, reliability, and firm size do not effect on economic value added. Companies with greater return on assets produce greater economic value added.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.21 no.2
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• pp.187-193
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• 2021

In February 2020, Gyeonggi-do paid the world's first Data Dividend to local residents of Gyeonggi Province who produced data using local currency. Currently, Data Dividend is being paid to consumers who have produced data, but this paper studied the expansion of Data Dividend qualifications according to the contribution to creating added value. First, it raised the question of whether it is right for the recipient of Data Dividend to have only the consumers who produced the data. Second, by analyzing the four elements of data valuation criteria that influenced the creation of added value identified the objects that influence the creation of added value. The 4 factors were divided into productivity, effectiveness, concreteness, and usability, and the objects corresponding to each factor were analyzed. Accordingly, it was determined whether platform workers contributed to the creation of added value. In conclusion, it was confirmed that not only consumers, who were the first data producers, but also platform workers who contributed to the concreteness of data valuation to create added value can qualify for Data Dividend. Since this paper focuses on the necessity of data allocation centered on platform workers among the objects, the validity of objects that influence added value other than platform workers are excluded.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.659-662
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• 2006

Plant industry is very important industry that dominate 70% of standard foreign countries construction acceptance an order woe 2004 years. Technique of plant industry is state that secure part equipment connection detailed design and construction class' competitive power. But, high added value creation among plant industry need technique elevation because available plan, basic design technology is insufficient. Therefore, high added value creation wishes to present problem of standard code and improvement direction for plant design to improve available plan, basic design technology competitive power.

• Journal of Korea Trade
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• v.25 no.3
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• pp.21-47
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• 2021

Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.1
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• pp.70-83
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• 2018

Korea's five leading industries-chemical, automobile, shipbuilding, metal and electronics-have been the growth engines of the Korean economy for the last 30 years. However, with their performance weakening in the past few years, Korea's annual growth rate has dropped to less than 2%. Just as the Japanese economy struggled through the lost decades, Korea's leading industries have been facing signals of arriving at a Strategic Inflection Point ("SIP") since the mid-2000s. The objective of this study is to present an appropriate value strategy for Korean firms in leading industries to gain sustainable competitive advantages. This paper examines the following issues : First, it diagnoses the signs and timing of SIP for the five leading industries. Second, this study examines 78 Korean and Japanese firms in order to understand the adaptation strategies of the highest and lowest performing firms from a value strategy point of view. Third, it empirically analyzes the correlation between the indicators of value strategy and the accounting performances of the Korean and Japanese firms. The data set used in the cluster analysis were collected from KISLINE database of NICE Information Service and annual reports. The findings in the case analyses of high and low performing companies show that high value-added specialty chemical materials and electronic component manufacturers that had a strong focus on value creation were defined as high performing companies. And in the cosmetic and automobile industries, companies with a strong emphasis on value appropriation gained high performance. Furthermore, the study conducted a cluster analysis based on two indicators R&D and advertisement expense. The analysis shows that a significant gap exists in the operating incomes among three groups classified under the value strategy. The study recommends that Korean firms are requested to increase R&D expenditure, conduct M&A and collaborate with companies that own source technologies to narrow the technology gap and improve their segment portfolio from commodity to value-added products.

• Journal of Fashion Business
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• v.5 no.3
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• pp.145-158
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• 2001

The purpose of this study is to help you understand the importance of developing of high value added fashion culture goods being integrated with technology and knowledge. And to propose efficient ways of creating a new brand which can be accepted by anyone who has international sensibility. First of all, after making deep research and investigation about the status of current situation in domestic knitwears industries and brands, and exploring problem areas, a growth plan with priority given to strategies for creation of high value added knitwears and its brands will be presented. As methods used in this study, researches was made mainly by digging into technical books on knitwears, fashion trends, and domestic and international fashion information magazine and leaflets, let alone, a lot of domestic market research was performed, as required, and sometimes knitwears simple items were also actually made in parallel.

• Journal of Information Technology and Architecture
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• v.11 no.1
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• pp.81-88
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• 2014

This study is about the suggestion of reduction method for social insurance cost of startup SMEs Based on the study abroad and the current status of Korea we suggest several methods such as direct and indirect support, exemption, deferment/loan. For the economic effect analysis, we derived benefits and costs. Employment, value added, and revenue increasing effects are considered as benefits. Costs are analyzed by each method. In case of exemption, the analysis is impossible. Analysis results show that direct and deferment/loan case have an effect of 563,469 jobs creation, added value of 26.82 trillion wons, and increase in tax revenues about 82.4 billion wons. In case of exemption, There are 105,368 jobs creation, 5.02 trillion wons of added value, and 15.4 billion wons of increase in tax revenues. And for each case, there are costs 9.58 trillion won, 5.42 trillion won, 1.79 trillion won.

• The Journal of the Convergence on Culture Technology
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• v.6 no.2
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• pp.117-122
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• 2020

In this study, among the new industries that are attracting attention as a new industry to lead the 4th Industrial Revolution era, Korean traditional culture and arts are being promoted in the context of local community efforts and collaboration between industry and academia. It aims to create jobs through local traditional culture, arts, tourism events and design product development, while seeking ways to secure labor force that can save and revitalize high value-added industries in the community. In particular, in the current situation where the era of change and the education of traditional techniques are increasingly ignored and neglected, this study is a traditional cultural art through natural dyeing education and cultural and art events conducted by industry, regional universities, and research institutes in Pyeongtaek for many years. It is expected to be used as a basic data for the transmission and creation of high value-added jobs.