Redistributed Manufacturing and the Impact of Big Data: A Consumer Goods Perspective

Abstract

Digitalization and the growth of big data promise greater customization as well as change in how manufacturing is distributed. Yet, challenges arise in applying these new approaches in consumer goods industries that often emphasize mass production and extended supply chains. We build a conceptual framework to explore whether big data combined with new manufacturing technologies can facilitate redistributed manufacturing (RDM). Through analysis of 24 consumer goods industry cases using primary and secondary data, we investigated evolving manufacturing configurations, their underlying drivers, the role of big data applications, and their impact on the redistribution of manufacturing. We find some applications of RDM concepts, although in other cases existing manufacturing configurations are leveraged for high volume consumer goods products through big data analytics and market segmentation. The analysis indicates that the framework put forward in the paper has broader value in organizing thinking about emerging interrelationships between big data and manufacturing.     

Understanding the emergence of redistributed manufacturing: an ambidexterity perspective

Abstract

This paper extends operations strategy theory on efficiency and flexibility trade-offs to the emergent phenomenon of redistributed manufacturing (RDM). The study adopts a multiple-case design including five small and five large pharmaceutical firms. We propose that organizations can gain the efficiency benefits of centralized manufacturing and the flexibility advantages of RDM by building an ambidexterity capability. To build such a capability, large firms can structurally partition their manufacturing and supply management functions, with one sub-unit managing centralized production and the other RDM. Smaller enterprises can build an ambidexterity capability by creating the right organizational context, where multi-skilled workers switch between efficient and flexible tasks. This paper contributes to theory by explaining the emergence of RDM using an organizational ambidexterity lens, laying the groundwork for new theory development in the field. We provide managers with a practical example of how to build an ambidexterity capability to realize flexibility and efficiency advantages.     

Re-distributed manufacturing and the food-water-energy nexus: opportunities and challenges

Abstract

Addressing the intersection of two important emerging research areas, re-distributed manufacturing (RDM) and the food-energy-water (FEW) nexus, this work combines insights from engineering, business and policy perspectives and explores opportunities and challenges towards a more localized and sustainable food system. Analysis centred on two specific food products, namely bread and tomato paste reveals that the feasibility and potential of RDM vary with the type of food product and the supply chain (SC) components. Physically, energy efficiency, water consumption and reduction of waste and carbon footprint may be affected by scale and location of production activities and potentials of industrial symbiosis. From the business perspective, novel products, new markets and new business models are expected in order for food RDM to penetrate within the established food industry. Studies on policies, through the lens of public procurement, call for solid evidence of envisioned environmental, social and economic benefits of a more localized food system. An initial integrated framework is proposed for understanding and assessing food RDM and the FEW nexus.     

A vision of re-distributed manufacturing for the UK’s consumer goods industry

Abstract

The linear production of consumer goods is characterised by mass manufacture, multinational enterprises and globally dispersed supply chains. Redistributed manufacture (RDM) is an emerging topic, which seeks to enable a transition of the current linear model of production and consumption, by taking advantage of new technologies. This paper aims to explore the challenges, opportunities and further research questions to set a vision of Redistributed manufacturing for the UK’s consumer goods industry. To set this vision, a literature survey was conducted followed by a qualitative enquiry where PESTLE¹ aspects of RDM were analysed. This analysis was interpreted through a roadmap. As a result of this roadmap, four RDM characteristics (i.e. customisation, use of digital technologies, local production and the development of new business models) were identified. These characteristics helped to set the future vision of RDM in the UK’s consumer goods sector.     

Supply chain reconfiguration opportunities arising from additive manufacturing technologies in the digital era

Abstract

The aim of this study is to explore the impact of additive manufacturing (AM) technologies on the configuration opportunities of supply chains (SCs) within the digital manufacturing era. To this effect, we first conduct a critical taxonomy of existing research efforts and then propose an integrated decision-making process for the design and management of SCs defined by digital manufacturing technologies. Following, we provide an integrated framework for future SC reconfiguration opportunities arising from the adoption of AM on a supply network setting. Our analysis demonstrates the significant ramifications of AM techniques on SC configuration and sustainability performance as opposed to conventional value networks; however, existing research is evidently limited due to scope related challenges and the inherent complexity at the manufacturing echelon of the respective supply networks.     

The implementation of digital technologies for operations management: a case study for manufacturing apps

Abstract

Manufacturing applications address business to business (B2B) with highly customised applications developed for specific requirements, offering highly specialised solution-oriented and service-based software components, systems, and digital tools that aim at a fast and accurate decision-making support system. The purpose of this paper is to describe the implementation of digital technologies for operations management using manufacturing or engineering apps (eApps), for product design and manufacturing processes. In particular, starting from the specific needs of two companies from mature European industries as automotive and food, this work depicts how this kind of solutions can support companies and improve their operations. In particular, related benefits and challenges faced for the full implementation of the developed tools are highlighted. Moreover a business model to exploit the manufacturing apps is also proposed. The business model proposed for the exploitation of the eApps supports the commercialisation of all the revenue streams offered by this rapidly growing sector taking into account the specific needs of the concerned stakeholders through a diversified value proposition.     

Do makerspaces represent scalable production models of community-based redistributed manufacturing?

Abstract

This research explores the development of local community-based ‘makerspaces’ as potential scalable forms of redistributed manufacturing (RDM). Makerspaces are rapidly emerging in post-industrial economies and have been identified as a catalyst of local regeneration in urban areas. However, their role in local production systems is limited. There is a gap in the literature, with respect to the evolution of makerspaces and their productive contribution. The purpose of this paper therefore is to identify, classify and examine the different types of makerspaces. Our focus is on the implementation characteristics that enable industrial production activity to take place. First, we used Leximancer (to identify from the literature) three types of makerspace. Second, we then identify five RDM implementation characteristics. The characteristics were integrated together to form the RDM-makerspace implementation model. Third, case studies were purposively selected to test and advance this model. They were subsequently classified as a Type 1 (educational), Type 2 (design) or Type 3 (production) makerspace. Only one of the case studies was classified as a fully evolved Type 3 production space. The findings concur with the literature that makerspaces tend to be primarily Type 1 or Type 2. Finally, the contribution to local production theory is emphasized.     

Comparing mining and manufacturing supply chain processes: challenges and requirements

The mineral raw materials industry is essential for manufacturing by providing the basic materials for their value adding processes. In the last decade, the integration of operations of the industry within global manufacturing supply chains has progressed greatly. The processes of the different stakeholders have been extensively analysed and modelled according to standardised frameworks such as the supply chain operations reference (SCOR) model. However, as of today, not all stakeholders are integrated to the same extent. Especially, in the early part of the supply chain, deep integration of the mineral raw materials industry is still an exception. This industry and its processes differ greatly from the average manufacturing company’s processes. Not being directly comparable results in the absence of applications of standardised modelling tools for supply chains like the above-mentioned SCOR model. These circumstances hinder the integration, understanding and exchange between industries that rely significantly on each other. In a first attempt to create a basis for further research, this study analyses, elaborates and compares the challenges and requirements of supply chain processes, with a special focus on sourcing processes, in manufacturing and mining. Based on these findings, an adaption of the SCOR model towards applicability in mining and mining supply processes is presented, followed by a critical discussion of the results and implications, later concluded by a short outlook on further research.     

Lead factory operationalisation and challenges

Abstract

This paper deepens the understanding of the lead factory concept by examining how the lead factory role is operationalised and what challenges are associated with it. The research is based on an explorative case study of eight Swedish lead factories in the manufacturing industry. The empirical findings suggest that the understanding of the lead factory concept should be extended as it is not restricted to one type of set-up. The findings show a spectrum ranging from an entire manufacturing plant, parts of a plant, to a virtual plant considered to be the lead factory. The research also shows a broad range of challenges experienced by lead factories. Several of these are related to and originate from unclear role, responsibility and mandate of the lead factory. The lack of dedicated resources for lead factory activities, specifically long-term development and difficulties in measuring the benefits of the role, were other challenges faced.     

Editorial for special issue on: humanitarian operations management

Abstract

Over the past decades, there has been increasing interest in studying humanitarian operations management. The mismatch between global humanitarian needs and the resources available, together with chronic vulnerability in many parts of the world, continues to have a direct bearing on the lives of millions of people in need of assistance. It also means that donors have to re-double their efforts to respond to disasters in a more efficient and effective manner. International humanitarian organizations (IHOs) often deal with a mix of disaster response and development programmes simultaneously. This operational mix entails disaster cycle management challenges such as project and programme planning of multi-objective global logistics, balancing earmarked donations for disaster response with budget needs for development programmes, and determining the push-pull boundaries in the supply chain, particularly with the increase in cash transfer programmes. The main purpose of this special issue is to report on research in humanitarian operations management. This special issue attempts to explore and examine the above topical issues at strategic, operational and technical levels.     

The emergence of sustainable manufacturing practices

Sustainable manufacturing appears to be a rapidly developing field and it would be expected that there is a growing body of knowledge in this area. Initial examination of the literature shows evidence of sustainable work in the areas of product design, supply chain, production technology and waste avoidance activities. Manufacturers publish metrics showing significant improvements in environmental performance at high level but information on how these improvements are achieved is sparse. Examining peer-reviewed publications focused on production operations there are few cases reporting details and there has been little prior analysis of published sustainable manufacturing activity. Moreover, the mismatch between academic and practitioner language leads to challenges in interpretation. This article captures and analyses the types of sustainable manufacturing activities through literature review. In turn, this can help manufacturers to access examples of good practice and help academics identify areas for future research.     

Engineering network operations for international manufacturing: strategic orientations,influencing factors and improvement paths

Abstract

Engineering operations contribute to international manufacturing networks (IMN) capabilities and thus improving their performance in an international context. The literature has recognized engineering networks (EN) with different strategic orientations (e.g. efficiency, innovation and flexibility); explored IMN capabilities in four key areas (i.e. accessibility, thriftiness ability, manufacturing mobility and learning ability); but provided diverse views on their possible connections. Especially, the received wisdom offers less guidance on how EN may enhance IMN capabilities. At the same time, the challenges of making effective decisions at the EN-IMN interface are compounded by a large number of influencing factors that are interrelated in a very complex manner. To cope with these challenges, the article reveals four ways that EN may contribute to IMN capabilities, identifies 15?key influencing factors and suggests optimal paths to enhance IMN capabilities based on the interpretive structure model (ISM) method.     

Additive manufacturing technology adoption: an empirical analysis of general and supply chain-related determinants

Despite experiencing immense growth in the past decade, additive manufacturing (AM) technologies—colloquially known as 3D-printing—are still rarely used in industrial fabrication. Being at the interface between technology, innovation, behavioral science and operations management research, this paper identifies multifaceted factors that determine the decision to adopt AM technologies for the production of industrial parts. A review of the relevant literature revealed eight potential factors. These can be classified into four interdisciplinary categories: technology-related factors, firm-related-factors, market structure-related factors, and supply chain-related factors. Special focus is placed on the impact of supply chain-related issues, because there are indicatives that these aspects have an influence on the decision to adopt AM technologies since AM may offer distinct opportunities for both, the supply- and demand-side of a firm’s operations. No work in the field of manufacturing technology adoption has examined the role of such inter-organizational factors before. The results of an empirical study among 195 firms indicate that demand-side benefits and compatibility are the main determinants of AM technology adoption. This suggests that not only intra- but also inter-organizational factors should be considered when investigating the adoption of technological innovations. Furthermore, it is carved out that the adoption of AM technologies has an interdisciplinary nature.     

On the adoption of lean manufacturing principles in process industries

Traditionally, the lean paradigm has been applied to discrete manufacturing of items that can be easily put together and taken apart. The process industry, on the other hand, transforms raw materials into cohesive units that are basically blended into a final product with parts that cannot be disassembled and then reassembled. The current lean literature provides numerous commendable examples of theory and practices of lean principles in discrete manufacturing. However, its application in process industry is limited. Furthermore, there is no systematic accounting of the lean literature in this sector, which may have contributed to lesser awareness in the industry. This paper provides a state-of-the-art review of lean manufacturing literature with respect to its applications in process industry. It contributes to the classification of literature in a manner which helps to identify strategies suitable for the adoption of lean concepts in process industry. The paper seeks to synthesise the literature with an emphasis on identifying the scope for lean in process industry and associated benefits. The review also presents an analysis of the lean tools and techniques that have been applied or have potential application in the process industry and the challenges to implement lean. We believe that such a comprehensive review will not only facilitate the adoption of lean in process industry but will also provide agenda for further research by exposing voids in the knowledge base.     

Bottleneck identification and ranking model for mine operations

Abstract

Mining has a long history of production and operations management. Considering the increasing complexity of reserves, declining metal grades, and worldwide price volatilities, mines have to operate more efficiently than ever. In recent years, companies have been adopting innovative solutions and technologies to reduce costs and remain competitive in the global market. Specifically, management of bottlenecks has been in the focus of the manufacturing industry for decades now. The mining industry has made significant advancements in process improvement tools using equipment, human, and asset tracking capabilities. However, to date, there is no holistic approach or system to identify and manage the bottleneck in the entire value chain of mining. This research proposes a new method to identify and rank the bottlenecks in a mine value chain. The method is applied in a coal mine and the results are presented in the case study.     

A neural network clustering model for miscellaneous components production planning

The growing importance of providing service to customers, e.g. post-sale assistance, supplying of spare parts, upgrading and integration of new elements in installed systems, enhances the importance of planning and management of upgrading parts in most manufacturing industries. These parts are generally characterized by high technical heterogeneity and have a highly variable and difficult to forecast demand. In some areas (especially the most dynamic, e.g. high-tech products), these kinds of components are quite common, and represent a very strong relation between the manufacturing firm and the market. These parts are generally too many to be efectively supported on a planning database system with individual records and too heterogeneous ( and sometimes with a too high value) to be supported all together in a single record. In this paper, we want to study the application of adaptive techniques for the clustering of these components in classes based on the similarities in their market behaviour in order to build an optimal database for planning production and supplying of these components.     

Product architecture,global operations networks,and operational performance: an exploratory study

Abstract

This paper investigates the relationships between product architectures and global operations networks and their impact on operational performance, based on survey data from 82 Swedish manufacturers. We find that modular and integral product architectures are associated with different characteristics of the global operations network, and that global operations network designs are characterised by three dimensions: network, plant and supply chain. The key aspects are network structure (configuration as well as coordination), plant focus (scale or scope) and the locus of supply chain capabilities (internal or external).     

Effects of key enabling technologies for seru production on sustainable performance

Demand uncertainty, economic globalization, and environmental deterioration force factories to innovate their manufacturing systems for achieving sustainable performance. Seru production, which is the latest manufacturing mode developed in Japan, attracts broad attention from both academia and practitioners. The overwhelming majority of existing works on seru production focus on economic performance unilaterally, while neglecting the environmental and social performance. This paper investigates the effects of key enabling technologies for seru production on sustainable performance. Firstly, four key enabling technologies for seru production are identified through systematic review, and an evaluation indicator system of sustainable performance in the context of seru production is developed. Then, the hypotheses about the effects of the identified key enabling technologies for seru production on sustainable performance are proposed on the basis of previous research achievements, theoretical analysis, and practical observations. Finally, the hypotheses are tested through structural equation modeling. Except for two hypotheses which are not supported and one which is indirectly supported, all other hypotheses are verified. The research results show that the four key enabling technologies for seru production have different effects on the three dimensions of sustainable performance. The achievements of this work are of significance to improve the comprehensive understanding of seru production, as well as to develop practical methods to implement sustainable operations.     

The management of international manufacturing networks: a missing link towards total management of global networks

Abstract

The purposes of this article are to provide a brief overview of the research on international manufacturing networks (IMNs), identify corresponding gaps and provide background for the papers published in this special issue. First, this article shows the importance of addressing the management of IMNs, especially in times of global turbulence as a result of new economic, political and technological trends. Second, it highlights research into the management of IMNs as a missing link in the Operations Management (OM) discipline, as most of the current OM research neglects the fact that the internal structures and relationships of multi-plant organizations inside firms play a critical role in how a supply chain/network operates and relies mostly on scholars in other fields for insights into high-level and strategic issues in the management of global operations. Finally, this article argues there is still a lot to do in order to develop new theories towards the total management of global networks that can holistically analyze different global (intra- and inter-firm multi-functional) networks and address the complex interdependencies between them.     

An integrated production and inventory model for a whole manufacturing supply chain involving reverse logistics with finite horizon period

This paper proposes a model and solution method for coordinating integrated production and inventory cycles in a whole manufacturing supply chain involving reverse logistics for multiple items with finite horizon period. A whole manufacturing supply chain involving reverse logistic consists of tier-2 suppliers supplying raw materials to tier-1 suppliers, tier-1 suppliers producing parts, a manufacturer which manufactures and assembles parts from tier-1 suppliers into finished products, distributors distributing finished products to retailers, retailers selling products to end customers and a third party which collects the used finished products from end customers, dissembles collected products into parts, and feed the parts back to the supply chain. In this system, we consider a finite horizon period. A mathematical model for representing the behaviors of the system is developed. Solution methods based on decentralized and a combination of decentralized and centralized decision making process, referred to as the semi-centralized decision making process, are proposed to solve the model while the centralized decision making process is solved by a mixed integer nonlinear programming method. A numerical example is used to demonstrate the model and the solutions based on the three types of the coordination.