• Journal of Korean Society for Quality Management
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• v.50 no.1
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• pp.125-138
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• 2022

Purpose: Failure Mode and Effect Analysis (FMEA) is a widely utilized technique to measure product reliability by identifying potential failure modes. Even though FMEA techniques have been studied, the form of Risk Priority Number (RPN) used to evaluate risk priority in FMEA is still questionable because of its shortcomings. In this study, we suggest common RPN(cRPN) to resolve shortcomings of the traditional RPN and show the extensibility of cRPN. Methods: We suggest cRPN which is based on Cobb-Douglas production function, and represent the various application on weighting risk factors, weighted RPN in a mathematical way, and show the possibility of statistical approach. We also conduct numerical study to examine the difference of the traditional RPN and cRPN as well as the potential application from the analysis on marginal effects of each risk factor. Results: cRPN successfully integrates previously suggested approaches especially on the relative importance of risk factors and weighting RPN. Moreover, we analyze the effect of corrective actions in terms of econometric analysis using cRPN. Since cRPN is rely on the reliable mathematical model, there would be numerous applications using cRPN such as smart factory based on A.I. techniques. Conclusion: We propose a reliable mathematical model of RPN based on Cobb-Douglas production function. Our suggested model, cRPN, resolves various shortcomings such as consideration of the relative importance, the effect of combinations among risk factors. In addition, by adopting a reliable mathematical model, quantitative approaches are expected to be applied using cRPN. We find that cRPN can be utilized to the field of industry because it is able to be applied without modifying the entire systems or the conventional actions.

• Journal of the Korean Data and Information Science Society
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• v.23 no.3
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• pp.569-577
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• 2012

The analysis and management of business failure has been recognized to be important in the area of financial management in the evaluation of firms' performance and the assessment of their viability. To this end, effective failure-prediction models are needed. This paper describes a new approach to prediction of business failure using the total margin algorithm which is a kind of support vector machine. It will be shown that the proposed method can evaluate the risk of failure better than existing methods through some real data.

• KEPCO Journal on Electric Power and Energy
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• v.7 no.2
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• pp.263-268
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• 2021

This paper statistically analyzes the time required for each failure cause and describes a diagnostic method for 159 reports of failure analysis of MV cables that occurred in the distribution system of KEPCO over the past 18 years. In addition, the manufacturer's failure rate compared to 100C-km was calculated using 381 cases of MV cable deterioration failure between 2008 and 2020. It is hoped that this paper will help those in charge of maintaining underground facilities at the business office to use the failure rate to prioritize facility diagnosis.

• Journal of Digital Convergence
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• v.11 no.8
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• pp.143-157
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• 2013

The purpose of this study is firstly, to find out the factors of entrepreneurial intention in potential entrepreneurs, and secondly to examine the relationship between objective start-up environment and subjective recognition of start-up environment, and entrepreneurial intention. For this study, investigation has been done to find out if fear of business failure, that is notoriously high among Koreans, acts as an influential factor between objective start-up environment/subjective recognition of start-up environment and entrepreneurial intention. The data is collected from 335 respondents comprised of college students and adults who are interested in starting their own businesses. The results of this study are as follows : (1) Objective start-up environment and subjective recognition of start-up environment, which is self-efficacy, have a positive effect on entrepreneurial intention. (2) Fear of business failure mediates the relationship between objective start-up environment/subjective recognition of start-up environment, and entrepreneurial intention (3) Child-care system, as an explain variable in the objective start-up environment in this study, is an important factor in the process of entrepreneurial commitment.

• Korean Business Review
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• v.17
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• pp.215-230
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• 2004

A lot of companies experience failure in innovating their management practices even though they adopt various innovation techniques that seem to be valid and competitive. The primary reason for this failure can be found from the fact that the company failed to conduct innovation techniques in harmony with their business strategies. In this context, we focus on developing a unified framework that innovates the management practices in accordance with the business strategies of the company. For this purpose, we first analyse numerous innovation techniques and business strategies, and then classify them into several clusters in terms of 'innovation technique-strategy" match. Therefore, the result of this work can be used as a guide to derive competitive innovation techniques that are compatible with the underlying business strategies.

• Knowledge Management Research
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• v.12 no.4
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• pp.121-132
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• 2011

Failure, the research object, means situations when goals and their results are different, which has developed presenting various aspects from ancient times and modern times. Failure is a complex concept which essentially requires judgement, and also a relative concept which can be changed depending on how you set up time base and standard. There are four stages for failure study to have been developed from studying failure through historical facts to the approach of organizational theory and it has been studied by looking at the failure of an organization according to different categories such as a developmental stage, a type of business, a period and a course. Compared with success science, failure study has not been studied sufficiently and also the level of its analysis is low. Thus, since lessons of failure tend to repeat themselves instead of being didactically accumulated, there need more studies on this. This thesis identified the main cause of the failure through various studies regarding failure which have been conducted at home and abroad. What the main cause of the failure that more than three studies mentioned have in common was that it occurred because organizations concentrated on the inside without communicating with external environment. The key point of failure study is to analyze failure, utilize it as assets, and create a frame of failure management. This thesis focused on delivering fragmentary knowledge on failure study, but case studies regarding this subject should be done in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.4
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• pp.27-37
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• 2015

Start up a company is critical to the regional economy and job creation and so get support from government and other organizations, but there are still exist of high rate of failure and CEO's stressful fear of failure. New firms are of utmost importance for the vitality of national economic driving forces but for those failed firms, they caused social and economic problems directly and indirectly, and brought frustration to the founders. The many education and research programs about entrepreneurship and venture creation were undertaken by the country and organizations, but the education and research about the vigilance of failed to start up company were almost ignored. If the attention can be put into the research about failed companies and the research can make the founders and pre-CEOs aware the failure of establishing a company, that would be very valuable as scenarios to see the company risks. This case study shows the finding the reasons which caused the failure of small venture companies and it's implications in the filed of establishing companies. The technology based venture company which had run 10 years in Daedeok's IT field was selected as the research object. The results show that the important factors such as entrepreneur characteristics(lack of communication and management knowledge), business management(lack of business expertise) and technology(loss of unique feature of product and lack of product extension) were the root cause of failures.

• The Journal of Economics, Marketing and Management
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• v.8 no.1
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• pp.12-19
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• 2020

Purpose - Strategic causes for the failure include unrealistic growth, overexpansion, unfamiliar new markets, volume obsession, unrealistic promises and poor project selection. Organizational causes are insufficient capital and profits, lack of business knowledge, poor financial management, poor sales skills, inadequate marketing, poor leadership, poor leadership transfer, project losses, poor field performance and owner bankruptcy. Uncontrollable causes include industry and economic weakness and banking and surety changes. While helpful, the list provides insufficient clarity regarding the causal roots of failure. Research design, data and methodology - The research framework to organize the information involved with many of the recent and large failures in the industry. Results - This research then identified five dominant root causes - excessive egoism, poor strategic leadership, too much change, loss of discipline and inadequate capitalization. Conclusion - Finally, additional input from external forces may accelerate the firm's pace to failure. It is important on the development of diagnostic tools that are based on this model and that will provide new ways to assess a conglomerate's level of risk for incurring a financial crisis.

• International Commerce and Information Review
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• v.15 no.2
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• pp.387-410
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• 2013

The competition aspect of business has been transformed from competition among companies to competition among ecosystem, and has been grown to platform based business, which is defined as ecosystem among business. Coming to the spotlight with the advantages of platform business combined software and hardware like Apple, platform business have been emerging in many fields. In this research, we define platform and platform based business, and then review related researches. After this, we review four representative research methodologies which are Yin(2011)' s case analysis research, Eisenhardt(2007)' s case analysis research, Romano etc' s web based qualitative data analysis method(2003), and Creswll(2010)' s open coding technique. And then, we suggest this research' s natural methodology combined with the advantages of four research methodologies. Based on our research methodology, we choose three high commercialized categories, which are smartphone platform business, social platform business, and search engine platform business. And then, we choose seven companies in three categories with success cases & failure cases, and analysis each case in perspective of our research methodology. And then, we suggest critical success & failure elements. Based on our findings, we suggest three strategic elements for the longevity of platform based business. Finally, we suggest the limitations of our research and further research issues.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.275-284
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• 2021

Survival analysis was used to analyze whether there is a difference in the effect of leverage on corporate failure according to the firm size. A total of 25,250 (year-company) companies listed on the Korea Stock Exchange and KOSDAQ market from 1999 to 2019 were analyzed. First, the increase in leverage generally acts as a factor that increases the possibility of corporate failure. On the other hand, the increase in the trade payable ratio lowered the possibility of failure of the company. The increase in corporate trade payable was perceived as a factor in reducing the possibility of corporate failure because it was considered the active development of business activities or active use of interest-free debt rather than leading to an increase in corporate risk. Second, a higher leverage ratio and trade payable ratio in large firms lowered the possibility of corporate failure. In the SMEs, all types of leverage increases are a factor that increases corporate failure. Overall, the effect of leverage on corporate failure differs according to the size of the company.