TY - GEN
T1 - An analytical exploration of the theorized relationship between total productivity and cash conversion CYCLE
AU - Tiruvengadam, Naveen
AU - Beruvides, Mario G.
N1 - Publisher Copyright:
© Copyright© (2018) by American Society for Engineering Management (ASEM). All rights reserved.
PY - 2018
Y1 - 2018
N2 - The cash conversion cycle (CCC), a proxy metric used for the measurement and management of Working Capital (WC), has long been established in previous research as being crucial to organizational profitability. The same holds true for the measure of productivity. Intuitively, synergies between CCC and productivity are obvious: both influence profitability. This paper explores analytically this intuitive relationship between Total Productivity (TP) and CCC that is lacking in literature. The concept of TP is derived from the theory of Total Productivity Management, which acknowledges and includes in its framework the impact of non-operational factors on operations and as such states that WC influences productivity and thereby profitability. The results of such an analysis will assist engineering managers to understand this critical relationship in addition to providing the platform for further research into the predictability of health/profitability of an organization using either or both of TP and CCC.
AB - The cash conversion cycle (CCC), a proxy metric used for the measurement and management of Working Capital (WC), has long been established in previous research as being crucial to organizational profitability. The same holds true for the measure of productivity. Intuitively, synergies between CCC and productivity are obvious: both influence profitability. This paper explores analytically this intuitive relationship between Total Productivity (TP) and CCC that is lacking in literature. The concept of TP is derived from the theory of Total Productivity Management, which acknowledges and includes in its framework the impact of non-operational factors on operations and as such states that WC influences productivity and thereby profitability. The results of such an analysis will assist engineering managers to understand this critical relationship in addition to providing the platform for further research into the predictability of health/profitability of an organization using either or both of TP and CCC.
KW - Cash conversion cycle
KW - Total productivity management
KW - Working capital management
UR - http://www.scopus.com/inward/record.url?scp=85064344193&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:85064344193
T3 - 39th International Annual Conference of the American Society for Engineering Management, ASEM 2018: Bridging the Gap Between Engineering and Business
SP - 806
EP - 815
BT - 39th International Annual Conference of the American Society for Engineering Management, ASEM 2018
PB - American Society for Engineering Management
T2 - 39th International Annual Conference of the American Society for Engineering Management: Bridging the Gap Between Engineering and Business, ASEM 2018
Y2 - 17 October 2018 through 20 October 2018
ER -