Developing a manufacturing vision

The concept of a manufacturing vision is introduced as a company specific, commonly shared, holistic picture of the way in which future manufacturing in the company will function. First is presented what a manufacturing vision is, and then is presented a five-step framework in which such a manufacturing vision may be developed. A manufacturing vision is regarded as a bridge between the mission, goals, and strategies of an industrial enterprise and the detailed design of a manufacturing system. Such a bridge may ensure that manufacturing is able to make a relevant strategic contribution to developing and sustaining the competitiveness of the company and may serve as a guide for innovation and integration of the various elements of a manufacturing system. The paper rests on action research projects in more than ten industrial companies, and the experiences gained are discussed in a section on issues related to the development process including experimentation without fear of losing face, participation and involvement of managers and employees, and finally the outset for a manufacturing vision. To give an example of a manufacturing vision the paper also very briefly introduces a case of a medium-sized supplier of welded parts and equipment for a number of different industries.     

Implementation of manufacturing strategy: A select study of Indian process companies

This paper presents findings of an extensive survey of Indian process companies. Based on the survey, three companies have been selected for detailed case studies. Their experiences in the manufacturing strategy process are analysed. Although the companies represented diversity in terms of product type, sales volume, longevity and geographic location, they shared several commonalities including use of advanced manufacturing technologies. The process of strategy formulation varied among the companies in terms of participants, complexity and degree of formalization. Competitive priorities, order winners and critical success factors are identified for these companies. Based on strategic manufacturing issues, manufacturing competence index for the companies has been worked out.     

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.     

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.     

Acceptance of automation manufacturing technology in China: an examination of perceived norm and organizational efficacy

Abstract

With a shift to more automation technology, social acceptance of technology plays an important role in the manufacturing sector. To what extent this occurs, and affects the adoption of technology, has been less researched, but is important in deciding how such technology is introduced, and the nature of the shift from labour-intensive manufacturing to automation. This research applies the revised technology acceptance model (TAM) to examine the impact of social and individual antecedents on the acceptance of automation manufacturing technology. Survey data are collected from 258 Chinese manufacturers. Results suggest that perceived norms significantly affect organizational intention to use automation manufacturing technology both directly and via perceived usefulness; organizational efficacy explains the intention to use via mediating effect of perceived usefulness and perceived ease of use. This research is one of the first extending and applying TAM from individuals to organizations.     

Developing an understanding of lean thinking in process industries

The research described in this article has set out to determine the extent to which lean thinking is being adopted as a manufacturing philosophy by process industries. It concerns the application and examination of key lean manufacturing principles, namely, the alignment of production with demand, the elimination of waste, the integration of suppliers (IS) and the creative involvement of the workforce in improvement activities, to a range of process industry types based on Dennis and Meredith's taxonomy of process industry transformation systems [Dennis, D. and Meredith, J., 2000a. An empirical analysis of process industry transformation systems. Management Science, 46 (8), 1085–1099]. Seventy-nine process industry product streams across 62 sites were studied. In addition, a five-site investigative field study was also undertaken. The findings demonstrate that lean practices associated with the elimination of waste are consistently used for improving manufacturing performance throughout the taxonomy of process industries but practices associated with other lean principles are inconsistently applied. In addition, explanations are provided on the appropriateness of lean thinking as a manufacturing philosophy and a strategy for improving manufacturing performance in different process industry types, and on the extent to which lean principles and practices are dependent on the characteristics of process industry transformation systems.     

A routine-based framework implementing workload control to address recurring disturbances

Abstract

This research focuses on responsiveness in high variety manufacturing environments. To achieve it, the article proposes to develop Dynamic Response Capabilities (DRCs) of the manufacturing system defined as the abilities to readjust the planned operating parameters of workload, capacity, and lead time, in the wake of disturbances. To inform their development, built on the Workload Control theory, a routine-based framework is proposed. The framework supports an integrated approach for the implementation of adaptive decision-making routines for workload, capacity, and lead time readjustments at different stages in the order fulfilment process. Findings from two empirical cases show the appropriateness of the framework to develop and utilise DRCs in different settings of disturbances. Results of a simulation study, with one of the case companies, also shows the effectiveness of the framework to drive performance improvements in presence of recurring disturbances leading to demand variability.     

Engineering change: A theoretical assessment and a case study

The competitive playground where nowadays firms struggle to survive has rapidly become unforeseeable: product life cycle has shrunk, becoming even shorter than in the past, and world-wide market is suffering for a strong customer differentiation which led to an increasingly wide product mix. In this industrial environment, the engineering change process is getting more and more attention throughout the branches of industry, as it appears as a critical process which seeps into the operations management core, thus influencing the overall firm's performances. A brief state-of-the-art in the area of engineering change is firstly presented. Then a proposal of classification and a new methodology for an effective engineering change process management are suggested. The new proposed methodology has been successfully applied to a real-life manufacturing system and the related case study is reported at the end of the paper.     

GIM and logistics in the factory of the future

Abstract

In the future, the competitive strength of industry will depend on its ability to realize flexible production systems, to install intelligent EDP-systems and to link them to a goal-orientated logistic system. Currently, a lot of new strategies, concepts and approaches for production arc being promoted and discussed, often in a spirit of controversy: CIM (computer integrated manufacturing), 'production logistics’, and JIT (just-in-time production) have become familiar concepts which have one thing in common: new structures in production will be necessary. However, the overall effect of CIM is often very small in comparison to the investment for realizing this concept. The main reason is that such projects are missing a logistic orientation. A continuous flow of information and material as envisaged by the logistics principle requires not only that all automation components can be integrated on the technical level, but also that all relevant functions and sectors can be integrated organizationally.     

Extending the pursuit of flow (lean) management to encompass sales,general and administrative functions

Abstract

Operations management tends to be treated independent of other business functions—the silo syndrome. In this article, we call for operations management (OM) to broaden its perspective by strengthening linkages with other functions of the business, thereby to realize competitive advantages and strategic integration, as well as to avoid resource misallocation. The issues involved are presented and tested by examining the effects of intermeshing sales, general and administrative (SG&A) expenditures with customer-centred flow manufacturing, the latter being measured by system inventory as surrogate for customer lead time. In doing so, we designate trends in total inventory as the independent variable—representative of a dominant target of flow/lean management—and trends in SG&A expenditures as the output variable. The research tasks are enabled by inventory and SG&A data being widely available in companies’ audited financial statements. Such hard data offers methodological and validation advantages over, say, opinion-based survey research. The research adds bulk to existing flow/lean management theory and can be helpful in inducing primary business functions (e.g. OM, finance, sales and marketing) and sub-functions (such as SG&A and management accounting) to engage in cross-functional efforts in the cause of flow-oriented process improvement and company competitiveness.     

Decentralized WIP-oriented manufacturing control (DEWIP)

DEWIP is a manufacturing control system for job shop environments aiming at achieving short and reliable lead times by establishing WIP control loops between the manufacturing work centres. The paper describes the mode of function, the setting of parameters and simulation results of the new manufacturing control system. The setting of parameters is done with the aid of the funnel model and the theory of logistic operating curves, both developed at the Institute of Production Systems at the University of Hanover. The simulation is conducted using industrial data and makes it possible to assess DEWIP with regard to lead times, WIP level, performance and schedule reliability. DEWIP is compared both with an uncontrolled process and with the manufacturing control systems Load oriented order release (LOOR), Conwip and Polca. The results suggest that DEWIP and the models employed for the setting of parameters are suitable for job shop production and therefore offer a valuable alternative to prevailing centralized manufacturing control systems.     

Integration of CAD/CAM and production control in sheet metal manufacturing — an application area of operations research

Abstract

This paper describes a process planning system for sheet metal parts. This system has capabilities to deliver process planning data just in time. The change of tools, processes and even machines for manufacturing of the parts is possible at the shop door after design has been finished.

The sequence of the production planning steps carried out can be changed. In this way the system can be adapted to the requirements of different sheet metal manufacturing companies.

More detailed information is given about the methods used for nesting of the workpieces on the sheets to be produced.     

Technology and the manufacturing process

Abstract

This paper provides an appreciation of the effects of technology on the manufacturing process. Essentially, it is argued that technology is increasingly becoming an essential and endogenous part of the manufacturing process. Internal and dynamical processes related to the introduction and the absorption of technology are also leading manufacturing systems to be more complex, hierarchical, integrated and far more sensitive to external disturbances. It is also argued that technology induces its own growth process, triggering a process of perpetual technological challenge and change.The paper explains both how and why technology is inducing such changes and how it can be dealt with.     

Modelling and controlling product manufacturing systems using bond-graphs and state equations: Continuous systems and discrete systems which can be represented by continuous models

This paper presents an approach to the modelling and control phases involved in a cooperative process of design and management of the manufacturing systems. Modelling the evolution of the production flow, in the different sections of the system, is based upon the use of the bondgraph methodology in order to reach the state formalism which constitutes one of the modern representations of automation. The class of the systems studied ranges from continuous systems to discrete systems, which can be represented by a continuous approach according to the level of approximation required. The first part of this paper is dedicated to the development of generic models associated with the various basic entities of the manufacturing systems. Then, the bondgraph model of any system is obtained by assembling generic models in relation to the implementation of the means of the studied system, thus guaranteeing a representation which is quite close to the engineering sketches. Finally, switching to the state equation is performed systematically with the easiness provided by this formalism while taking into account the causality principle. An application, involving most of the elementary models developed, concludes the paper.     

Model-based potential analysis of the distribution logistics: a case study

Abstract

The design of its distribution logistics has a decisive influence on a company’s logistical costs and performance. They therefore make an essential contribution to corporate success. This article describes a method for analysing the potential of distribution logistics in terms of logistical costs and performance. In contrast to previous procedures of business process re-engineering, this method maps distribution logistics holistically under variable distribution structures. The article is focused on the approach and results of a case study in a multinational manufacturer of propulsion and automation technologies for machine construction and systems engineering. The developed method is distinguished by a high degree of practicality and applicability. It will contribute to a more efficient design of distribution logistics.     

Risk management in plant investment decisions: risk typology,dimensions and process

Abstract

Managing risk associated with plant location decisions is a growing concern as companies seek to reassure investors about the robustness of their strategies. However, little attention has been paid to the systematic evaluation of risk associated with new plants. This paper investigates risk management practices in plant investment decisions through detailed case investigations in a cross section of industrial businesses at different levels of maturity in order to observe current practices, identify common principles and to synthesis systematic approaches to risk management. It identifies key risk categories and dimensions of risk management, building on three key bodies of literature – global manufacturing, investment and risk management     

An opportunity for system dynamics in manufacturing system modelling

The computer simulation of manufacturing systems is commonly carried out using discrete event simulation (DES). Indeed, there appears to be a lack of applications of continuous simulation methods, particularly system dynamics (SD), despite evidence that this technique is suitable for industrial modelling. This paper investigates whether this is due to a decline in the general popularity of SD, or whether modelling of manufacturing systems represents a missed opportunity for SD. On this basis, the paper first gives a review of the concept of SD and fully describes the modelling technique. Following on, a survey of the published applications of SD in the 1990s is made by developing and using a structured classification approach. From this review, observations are made about the application of the SD method and opportunities for future research are suggested.     

Adaptive/predictive scheduling: review and a general framework

Abstract

Abstract. Effective production scheduling can have a dramatic impact on manufacturing productivity. In modern automated manufacturing systems, the ability to revise and adjust the schedule can help reduce indirect costs which comprise a large portion of manufacturing costs in those systems. The objective of the research discussed here has been to study the feasibility of automatically scheduling multi-machine complexes and adjusting the schedule on a real-time basis by a unified computer system. We arc investigating selective real-time schedule adaptation by distinguishing between schedule generation and regeneration tasks (which might not be cost-effective) from schedule adaptation/recovery tasks (basically, causing less cosily disruption of the original plans). The article describes our general framework for automatic adaptive/predictive scheduling that includes five main functions: scheduler; monitor;comparator; resolvcr; recovery adaptor. Some experimental results demonstrating the effectiveness of the framework are discussed.     

Managing dependency in China outsourcing relationships

Abstract

This paper examines manufacturing firms’ use of guanxi and formal control to address dependence on suppliers and achieve desired outsourcing performance in China. Using survey data collected from manufacturing firms operating in China, a structural equation model is used to test the research model. The results suggest that manufacturing firms with high dependence on suppliers build Chinese guanxi with those suppliers to overcome the dependence and enhance outsourcing performance. In addition, Chinese guanxi also appears to facilitate the use of formal control, which was also found to have a positive relationship with outsourcing performance. This paper contributes to the literature by illustrating the importance of guanxi in achieving desired outsourcing performance in the China context, particularly in the case where a manufacturer perceives high dependency on its major supplier.