• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.4
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• pp.110-117
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• 2012

The demand for facility used in producing multi-products is changed dynamically for discrete and finite time periods. The excess or the shortage for facility is occurred according to difference of the facility capacity size and demand for facility through given time periods. The shortage facility is met through the outsourcing production. The excess facility cost is considered for the periods that the facility capacity is greater than the demand for the facility, and the outsourcing production cost is considered for the periods that the demand for facility is greater than the facility capacity. This paper addresses to determine the facility capacity size, outsourcing production products and amount that minimizes the sum of the facility capacity cost, the excess facility cost and the outsourcing production cost. The characteristics of the optimal solution are analyzed, and an algorithm applying them is developed. A numerical example is shown to explain the problem.

• Journal of the Korean Society of Clothing and Textiles
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• v.29 no.11
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• pp.1421-1431
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• 2005

In this study, outsourcing behaviors of shoe manufacturing companies were studied and four types of outsourcing were generated based on qualitative data collected through in-depth interviews with 21 practitioners of shoe manufacturing companies. In results, shoe manufacturers are actively adopting outsourcings in production of raw materials(RM) as well as final products(FP). However, relatively less effect is being made on outsourcing in the field of product planning, international marketing and information technology. Four types of outsourcing include shoe manufacturers focusing on: 1) domestic production of RH and FP, 2) domestic production of RM and international production of FP, 3) domestic/international production of RM and FP, and 4) international production of RH and FP. These types were differed. from their manufacturing items, product planning skills and target markets of shoe manufacturing companies.

• Journal of the Korean Society of Clothing and Textiles
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• v.34 no.4
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• pp.703-714
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• 2010

This study assumes that Korea's offshore outsourcing is used for diverse purposes such as designing, the supply of raw and subsidiary materials, production, and manufacturing. The purpose for production exists in the beginning stages of development, because it would have grown in scope since the 1990s when offshore outsourcing began in earnest. In this study, in-depth interviews were conducted with 24 firms with an annual production capacity of more than 200,000 pieces among clothing brands for the domestic market, clothing exporters, and promotion agencies. The interviews took place from December 18, 2008 to January 30, 2009. The interviewees were limited to the officers who had the authority to select manufacturers and decide on production volumes. Responses from the in-depth interviews were recorded, transcribed, and analyzed. The study results are summarized as follows: First, Korean clothing companies were found to rely on offshore outsourcing (China, North Korea, Vietnam, and Indonesia). Second, offshore outsourcing focused on the purposes for production; however, even fabrics were often outsourced in the case of production in China. Third, the interviewed firms mentioned cost savings, production cost reduction, and labor cost reduction most frequently as the main reasons for offshore outsourcing. Fourth, customs duties were considered most important in offshore outsourcing. Finally, when deciding on foreign manufacturers for offshore outsourcing, the surveyed clothing companies were found to: select manufacturers after market research in their outsourced countries, maintain existing contracts, or consider design capabilities and price quotations of candidate manufacturers.

• Asia pacific journal of information systems
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• v.6 no.1
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• pp.195-222
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• 1996

Faced with the challenge of reducing costs and improving competitive position, firms have recognized outsourcing as an important information systems (IS) strategic option. It has not been understood clearly what determines IS outsourcing. Based on the IS literature and transaction cost economics, cost efficiency related factors were identified, and a questionnaire survey was conducted. The results based on 181 responses from the bank executives in U.S. revealed that vendor production cost advantage and transaction risk are significant predictors of degree of outsourcing and outsourcing preference for data processing services. Insufficiency of IS funds and information technology uncertainty were found to be not only positively associated with vendor production cost advantage, but also directly associated with outsourcing preference and degree of outsourcing. Firm size is, however, not significantly related to vendor production cost advantge and IS outsourcing.

• The Journal of the Korea Contents Association
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• v.17 no.12
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• pp.289-298
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• 2017

This study analyzed the accomplishment of the outsourcing production policy which forces broadcasting companies to schedule and broadcast more than a certain proportion of outsourcing production programs. According to the results from the examination of whether or not the policy increased the diversity of broadcasting programs, it is positive that a rise in the number of production companies resulting from the implementation of the outsourcing production policy increased the diversity of broadcasting program makers, but programs supplied were limited to certain genres, failing to be diverse. According to the results from the examination of whether or not the competitiveness of broadcasting and video contents increased, production conditions had not improved due to the controversy over the ownership of the right of production between terrestrial broadcasting companies and outsourcing production companies. In addition, though there was the positive effect of increasing export of broadcasting programs, the exports were limited to certain genres.

• IE interfaces
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• v.13 no.3
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• pp.512-520
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• 2000

An integrated process planning and scheduling model considering outsourcing in manufacturing supply chain is proposed in this paper. The process planning and scheduling considering outsourcing are actually interrelated and should be solved simultaneously. The proposed model considers the alternative process plans for job types, precedence constraints of job operations, due date of production, transportation time and production information for outsourcing. The integrated states include:(1) Operations sequencing, (2) Machine selection, (3) Scheduling with outsourcing under the due date. To solve the model, a heuristic approach based on genetic algorithm(GA) is developed. The proposed approach minimizes the makespan considering outsourcing and shows the best operation-sequences and schedule of all jobs.

• Asia pacific journal of information systems
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• v.20 no.3
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• pp.115-137
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• 2010

Information technology (IT) outsourcing, the use of a third-party vendor to provide IT services, started in the late 1980s and early 1990s in Korea, and has increased rapidly since 2000. Recently, firms have increased their efforts to capture greater value from IT outsourcing. To date, there have been a large number of studies on IT outsourcing. Most prior studies on IT outsourcing have focused on outsourcing practices and decisions, and little attention has been paid to objectively measuring the value of IT outsourcing. In addition, studies that examined the performance of IT outsourcing have mainly relied on anecdotal evidence or practitioners' perceptions. Our study examines the contribution of IT outsourcing to economic growth in Korean industries over the 1990 to 2007 period, using a production function framework and a panel data set for 54 industries constructed from input-output tables, fixed-capital formation tables, and employment tables. Based on the framework and estimation procedures that Han, Kauffman and Nault (2010) used to examine the economic impact of IT outsourcing in U.S. industries, we evaluate the impact of IT outsourcing on output and productivity in Korean industries. Because IT outsourcing started to grow at a significantly more rapid pace in 2000, we compare the impact of IT outsourcing in pre- and post-2000 periods. Our industry-level panel data cover a large proportion of Korean economy-54 out of 58 Korean industries. This allows us greater opportunity to assess the impacts of IT outsourcing on objective performance measures, such as output and productivity. Using IT outsourcing and IT capital as our primary independent variables, we employ an extended Cobb-Douglas production function in which both variables are treated as factor inputs. We also derive and estimate a labor productivity equation to assess the impact of our IT variables on labor productivity. We use data from seven years (1990, 1993, 2000, 2003, 2005, 2006, and 2007) for which both input-output tables and fixed-capital formation tables are available. Combining the input-output tables and fixed-capital formation tables resulted in 54 industries. IT outsourcing is measured as the value of computer-related services purchased by each industry in a given year. All the variables have been converted to 2000 Korean Won using GDP deflators. To calculate labor hours, we use the average work hours for each sector provided by the OECD. To effectively control for heteroskedasticity and autocorrelation present in our dataset, we use the feasible generalized least squares (FGLS) procedures. Because the AR1 process may be industry-specific (i.e., panel-specific), we consider both common AR1 and panel-specific AR1 (PSAR1) processes in our estimations. We also include year dummies to control for year-specific effects common across industries, and sector dummies (as defined in the GDP deflator) to control for time-invariant sector-specific effects. Based on the full sample of 378 observations, we find that a 1% increase in IT outsourcing is associated with a 0.012~0.014% increase in gross output and a 1% increase in IT capital is associated with a 0.024~0.027% increase in gross output. To compare the contribution of IT outsourcing relative to that of IT capital, we examined gross marginal product (GMP). The average GMP of IT outsourcing was 6.423, which is substantially greater than that of IT capital at 2.093. This indicates that on average if an industry invests KRW 1 millon, it can increase its output by KRW 6.4 million. In terms of the contribution to labor productivity, we find that a 1% increase in IT outsourcing is associated with a 0.009~0.01% increase in labor productivity while a 1% increase in IT capital is associated with a 0.024~0.025% increase in labor productivity. Overall, our results indicate that IT outsourcing has made positive and economically meaningful contributions to output and productivity in Korean industries over the 1990 to 2007 period. The average GMP of IT outsourcing we report about Korean industries is 1.44 times greater than that in U.S. industries reported in Han et al. (2010). Further, we find that the contribution of IT outsourcing has been significantly greater in the 2000~2007 period during which the growth of IT outsourcing accelerated. Our study provides implication for policymakers and managers. First, our results suggest that Korean industries can capture further benefits by increasing investments in IT outsourcing. Second, our analyses and results provide a basis for managers to assess the impact of investments in IT outsourcing and IT capital in an objective and quantitative manner. Building on our study, future research should examine the impact of IT outsourcing at a more detailed industry level and the firm level.

• The Journal of the Korea Contents Association
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• v.19 no.12
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• pp.289-298
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• 2019

This paper studied a meta-analysis of 45 papers published during the administration of Lee Myung-bak and Park Geun-hye governments in order to renew academic interest in the TV outsourcing production policy. The meta-analysis was made up of classifications of three items(issued year, journal, academic field) and six items(topic, aim, question, subject, methodology, results). According to the results, the articles(30, 66.7% and 15, 33.3%) published during Lee & Park's regimes adapted the promotional topics for TV outsourcing production policy. The reasons for the papers(18, 40.0%) on management economy, industry, and advertising related to outsourcing production policy are because the two governments focused on research projects that matched the regime stance rather than the autonomy and diversity of broadcasting, media, contents, and the visual.

• The Journal of Information Systems
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• v.13 no.1
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• pp.39-57
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• 2004

As a result of the fast development of Information communication technology, the competitive advantage of companies and the service quality of nonprofit organizations has been largely changed. Corresponding to this kind of change, companies have tried to make production improvement, competitive strengthening, and organizational innovation. Meanwhile, the nonprofit organizations directed by the government are pursuing the service innovation from general administration area to the public service for civilians. In relation to this, risk management of the company's information systems outsourcing has largely been studied until now. However, the study of risk management for nonprofit organization information systems outsourcing has rarely been made. In this paper, to provide the theoretical base for further research, we have attempted to develop the evaluation framework for risk management of information systems outsourcing considering the characteristics of nonprofit organizations.

• The Journal of Information Systems
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• v.13 no.2
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• pp.49-64
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• 2004

Recently, SCM(Supply Chain Management) embraces the dynamic environmental changes of the participatory bodies in supply chain. Under this dynamic SCM environment, the selection of supplier and outsourcing company is very important. In their selection, the productivity and expertise of suppliers and outsourcing companies are, of course, to be considered as important factors, but whether or nottheycanmeettheduedateisacritical factor. In particular, this is true because an order-based manufacture ought to have CTP(Capable To Promise). For this purpose, by capitalizing onthevirtualmanufactureundertheSCM, this paper has tried to suggest a new agent system for the selection of supplier and outsourcing company. While performing virtual manufacture based on the integration scheduling, this system acquires the production environment and scheduling information of both suppliers and outsourcing companies on a real-timebasis,thusmakingintegrationschedulingpossible. Also, in order to provetheviabilityofthisstudy,thispaper has selected a specific domain and applied it.