COMPUTER-INTEGRATED MANUFACTURING: A TAXONOMY OF INTEGRATION AND RESEARCH ISSUES

The past decade has seen an upsurgence in the number of manufacturing companies that are attempting to transform into computer-integrated enterprises. However, much of the computer-based integration efforts in these manufacturing organizations have been limited in scope and localized within certain areas of the organization (particularly, technology-intensive areas such as the shop floor). Such compartmentalized and myopic approaches to the development of computer-integrated manufacturing (CIM) systems undermine the ability of these systems to reach their fullest potential. CIM is much larger in scope and can impact an organization along various dimensions and at various levels. The fact that no completely integrated manufacturing enterprise has been developed to date can be attributed, in part, to a lack of understanding of the scope and implications of CIM. The purpose of this paper is, therefore, twofold. First, the paper presents a meta-schema (called TRIAD) for multidimensional and multilevel integration of a manufacturing system. Second, on the basis of the proposed meta-schema, the paper develops a taxonomical framework for defining key integration issues in CIM system design and discusses critical research needs that exist in this area. It is hoped that this paper will serve as a road map for research efforts that will enable the emergence of comprehensive CIM systems.     

Beyond Make‐Buy: Internalization and Integration of Design and Production

Much recent attention in industrial practice has been centered on the question of which activities a manufacturing firm should complete for itself and for which it should rely on outside suppliers. This issue, generally labeled the “make‐buy” decision, has received substantial theoretical and empirical attention. In this paper, we broaden the scope of the make‐buy decision to include product design decisions, as well as production decisions. First, we examine independently the decisions of whether to internalize design and production, and then we consider how design and production organizational decisions are interdependent. The specific research questions we address are: (1) How can design and production sourcing decisions be described in richer terms than “make” and “buy”? (2) Do existing theories of vertical integration apply to product design activities as well as production decisions? (3) What is the relationship between the organization of design and the organization of production? (4) What organizational forms for design and production are seen in practice? After developing theoretical arguments and a conceptual framework, we explore these ideas empirically through an analysis of design and production sourcing decisions for bicycle frames in the U. S. mountain bicycle industry.     

Evolution of industry 4.0 and international business: A systematic literature review and a research agenda

Industry 4.0 has attracted significant attention from researchers in the international business field for a decade. This paper critically analyzes the literature on the relationships between Industry 4.0 and international business. A systematic literature review of 59 studies published between 2011 and December 2020 is conducted. Using the Theory, Context, Characteristics, and Method (TCCM) framework, the review identifies various gaps in research and proposes future research agenda. The results show that (1) Industry 4.0 modifies specific domains in the field of international competitiveness and organization and (2) international business affects the choices and opportunities of adopting Industry 4.0. The need for further theoretical development in the relationships between international business and Industry 4.0 is observed especially in terms of location choices, global value chains, international organizations and international trade. The results contribute to the relevant research field and provide substantial managerial implications.     

Managerial challenges of Industry 4.0: an empirically backed research agenda for a nascent field

The increasing intelligence of products and systems, their intra-company cross-linking and their cross-company integration into value creation networks is referred to as Industry 4.0. Academics and practitioners, largely agreeing on the global importance of this proclaimed industrial revolution, have published many contributions on the topic. Research, however, is rather focused on investigating single technologies in quite specific application domains and largely neglects the profound managerial challenges underlying Industry 4.0. Given the recent plea for a more active contribution from the management science community, we strive to establish Industry 4.0 as a challenging but promising field for management research, and aim to assist scholars in engaging with the topic. Therefore, we first gather and analyze extant contributions by means of a systematic literature review and synthesize the information gained into 18 managerial challenges of Industry 4.0 falling into six interrelated clusters: (1) strategy and analysis, (2) planning and implementation, (3) cooperation and networks, (4) business models, (5) human resources and (6) change and leadership. Considering that Industry 4.0 is still an emerging topic and publications may therefore not always be found in highly ranked journals, we aimed to increase the confidence in our findings and triangulated our data by conducting an online survey of industry experts and academics that allows us to qualify the identified challenges in terms of importance and future research need. On this basis, we present an empirically backed research agenda and suggest fruitful avenues for future research in three basic categories: practice-enhancing research, knowledge-enhancing research, and high-impact research.     

Taxonomy of ERP integrations and performance outcomes: an exploratory study of manufacturing firms

Building and deploying network capabilities of firms are crucial for sustaining competitive advantage. Enterprise resource planning (ERP) systems are useful to enhance such network capabilities thorough effective information flows. Their intended goals are measured in terms of production costs, operational flexibility and supply chain performance outcomes. However, the impact of ERP system implementation on firm performance has been reported as somewhat inconclusive. This study contends that a missing link in the story is the scope and extent of ERP system implementation after investigating how the extent of ERP integration is associated with the performance outcomes of manufacturing firms. The study also posits that restructuring in the organisation and supply chains are positively associated with manufacturing performance. Since ERP often entails restructuring in an organisation and supply chains, it is anticipated that restructuring plays an important role in inducing positive impact of ERP implementation to the firm. Using a global sample of 641 manufacturers, this research identifies four distinct ERP systems integration patterns, epitomised by different extents and directions of integration, and finds a significant association among the broadest degree of ERP systems integration, restructuring and plant performance improvement. The empirical results also show that restructuring takes place most actively in a firm that implement ERP with widest scope and scale.     

A resource-based view on SMEs regarding the transition to more sophisticated stages of industry 4.0

The integration of small and medium-sized enterprises (SMEs) within the concept Industry 4.0 represents one of its main challenges, as they play a vital part in industrial value chains that shall be digitized from suppliers to the end customer. However, what the implementation stages for Industry 4.0 in SMEs should be as well as the respective resources for achieving the next stage are scarcely understood. In response, this paper proposes a framework using a resource-based review for Industry 4.0 implementation according to the stage of development in SMEs, created between researchers, policy makers, and 354 manufacturing SMEs in the province of Gipuzkoa (Basque Country, Spain). The paper applies a mixed-method approach, combining qualitative (interviews) and quantitative elements (survey data). The results are used to develop a model with four stages of SMEs that are characterized by having distinct preconditions and conditions for Industry 4.0. Thereupon, the required measures to achieve the next stage of Industry 4.0 implementation are derived. This highlights Industry 4.0 for SMEs as a process with different stages toward achieving sustainable competitive advantage and offering insight into how the different resources operate. The high importance and advanced position regarding industrial value creation and SMEs in Gipuzkoa allows to generalize and transfer the findings to other European regions.     

Manufacturing Practices and Strategy Integration: Effects on Cost Efficiency,Flexibility, and Market‐Based Performance

Manufacturing plant managers have sought performance improvements through implementing best practices discussed in World Class Manufacturing literature. However, our collective understanding of linkages between practices and performance remains incomplete. This study seeks a more complete theory, advancing the idea that strategy integration and enhanced manufacturing capabilities such as cost efficiency and flexibility serve as intermediaries by which practices affect performance. Hypotheses related to this thesis are tested using data from 57 North American manufacturing plants that are past winners and finalists in Industry Week's“America's Best” competition ( Drickhamer, 2001 ). The results suggest that strategy integration plays a strong, central role in the creation of manufacturing cost efficiency and new product flexibility capabilities. Furthermore, strategy integration moderates the influences of product‐process development, supplier relationship management, workforce development, just‐in‐time flow, and process quality management practices on certain manufacturing capabilities. In turn, manufacturing cost efficiency and new product flexibility capabilities mediate the influence of strategy integration on market‐based performance. These findings have implications for practice and for future research.     

Interpretive structural modeling-based framework for mass customisation enablers: an Indian footwear case

Abstract

In the epoch of open economy and with the emergence of availability of individualised products over the Internet, Indian manufacturing industries are facing an enormous pressure to become more flexible and responsive, to accomplish customer’s varied and increasing demands. Mass customisation (MC) is about developing a customised product on demand for a particular customer after reception of a real order and producing it with the similar operational efficiency as one would anticipate from a mass-produced product. MC takes into account the merits of both the earlier systems of production, i.e. mass production and craft production. The craft production satisfies the personalised demands of customers and the mass production produces a limited variety of products at lower cost. Industries in developing countries such as India confront pressure from several perspectives to adopt MC. This study has been presented in the context of Indian manufacturing industries, and particularly for footwear industries to examine the enablers of MC. Achieving MC, however, require certain enabling technologies and processes in place. Several such enablers have been identified from the research literature. The objective of this study it to key out significantly important enablers for MC using interpretive structural modelling (ISM), and develop a hierarchy of these enablers for the Indian footwear units. ISM results show that modularity-based practices, digital manufacturing practices and supply chain integration are the most important MC enablers. Enhanced flexibility and responsiveness in the footwear production system can be achieved through modular and reconfigurable production system.     

Overcoming pandemic challenges through product innovation: The role of digital technologies and servitization

The fast-changing scenario related to the COVID-19 pandemic calls for firms to rapidly redefine and innovate their strategies to sustain their businesses, with research emphasizing the key roles of digital technologies and servitization. We aim to enrich the theoretical debate on this matter by assessing how small and medium-sized enterprises (SMEs) achieve product innovation under time constraints by leveraging two specific technology groups (information and communication technologies [ICT] and Industry 4.0 data-processing technologies) and servitization. The research is based on a mixed-method approach consisting of an original survey completed by 257 Italian SMEs (grounded on a previous qualitative study about such SMEs' behaviors during the first Italian lockdown), followed by in-depth interviews with the owners and/or managers of the eight SMEs that participated in the survey. The results show a positive relationship between the increased use of digital technologies (ICT and Industry 4.0 data-processing technologies) during the pandemic with servitization and, in turn, with product innovation. Specifically, the increased use of ICT during the pandemic had a direct positive effect on product innovation, while Industry 4.0 data-processing technologies affected product innovation only through the full mediation of servitization. The qualitative study allowed us to highlight how the different kinds of digital technologies supported SMEs’ innovation (servitization and product innovation) during the pandemic. The theoretical and practical contributions of this study are discussed.     

Operations Strategy Research in the POMS Journal

In this paper, we examine the operations strategy literature in the POMS journal to determine what has been learned and to suggest new directions for further study in this important area of research. Our review of this literature resulted in the selection of thirty‐one relevant articles, many of which draw upon multiple theoretical perspectives. We identify eight such theoretical perspectives, and go on to classify these perspectives in terms of the scope of inquiry employed in the research (focused versus aggregated) and the researcher's assumptions about choice processes (behavioral versus rational). In doing so, we show that this body of work is dominated by papers that draw upon theoretical perspectives enabling a more holistic scope of inquiry, with a bias towards a view of strategy as a highly rational process. Building on our systematic review and integration of the literature, we suggest multiple areas for future research.     

Managing key interfaces in production planning and control

Detailed observational research, undertaken in two large and complex manufacturing businesses, identified ways in which work groups interface to employ knowledge to perform production planning and control activities. Eleven interfaces were observed and methods were established to classify them into types based on how knowledge is communicated and shared. Characteristics of the decision-making environment on either side of each interface were identified to explore their impact on interface type. Key differences in decision-makers’ predominant modes of decision-making, their agendas, and the form and scope of their knowledge were found to influence communication and decision-making processes. These findings have implications for production planning and control organisation and process design. In particular, it is seen that the effectiveness of interfaces may be improved through the alignment of decision-making approaches, agendas and knowledge across interfaces and/or through the effective use of interface tools that enable decision-makers to understand the consequences of decisions made.     

Defining and assessing industry 4.0 maturity levels – case of the defence sector

Abstract

Firms do not currently fully appreciate the complex characteristics of Industry 4.0 and as a result are uncertain about what it represents for them. In this study, an assessment model is developed to measure the level of implementation of Industry 4.0 technologies, around three dimensions: ‘Factory of the Future’, ‘People and Culture’, and ‘Strategy’. The ‘Factory of the Future’ is the main dimension and is composed of eight attributes: Additive Manufacturing, Cloud, Manufacturing Execution System, Internet of Things and Cyber Physical Systems, Big Data, Sensors, e-Value Chains, and Autonomous Robots. The study uses a defence manufacturing firm to develop, test and validate the model and report on 12 partners. We concluded that the focal firm has an Industry 4.0 maturity level of 59.35, above the sector average of 55.58. This research contributes by empirically developing a model and providing an analysis of major firms in the Defence supply network.     

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.     

Managing Differentiation‐Integration Duality in Supply Chain Integration*

Existing research focuses on the positive returns to operational performance of firms’ supply chain integration (SCI) with suppliers, buyers, and customers. We draw on differentiation‐integration duality and contingency theory to suggest that manufacturing firms should seek to achieve both integration through supply chain coordination activities and differentiation through modularity‐based manufacturing practices (MBMP). Using a sample of 261 manufacturing firms, we identify an inverse U‐shaped relationship between SCI and operational performance. Furthermore, we find support for the importance of differentiation‐integration duality as a fit between high levels of SCI and high levels of MBMP results in enhanced operational performance. We find support for a contingency perspective as fit is especially critical at higher levels of environmental uncertainty. Implications for theory, practice, and further research are suggested.     

Human resources management and corporate governance: Integration perspectives and future directions

The aim of this article is to investigate, through a systematic review of the literature, what has been studied and published in the international academic literature regarding the integration between human resources management (HRM) and corporate governance (CG).We accomplished it answering two research questions: How has evolved the academic publications regarding the integration between HRM and CG? and Under which theoretical perspectives the integration between HRM and CG has been studied? The research covered the publications from 2000 to 2017, and the analysis comprises 79 articles from relevant international journals. The results revealed the predominance of a shareholder theoretical perspective and the apparent legitimation of HRM as an important variable of CG, but with a secondary position, as consultant or processes provider. Besides exploring and exposing the state of the art in this area of knowledge, through a critical analysis of the literature, this study highlights the gaps in the literature and provides suggestions for future studies.     

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.     

基于个性化需求的产品竞争供应链结构选择

基于"制销分离"与"定制一体"两种结构选择,构建个性化产品供应链处于非竞争与竞争环境下的博弈模型,在引入一个实际案例的基础上,运用算例仿真比较分析两种运营模式下的供应链运作策略和盈利差异。结果显示：与制销分离结构相比,个性化产品供应链选择定制一体结构,有利于匹配产品个性化制造、提升产品个性化水平和市场需求、增加供应链的期望收益;个性化产品供应链选择制销分离结构时,适度的批发价格激励能够提升产品个性化水平、更好满足消费者个性化需求、改善供应链的运营绩效,分销商适度让利加大批发价格激励力度可显著促进产品个性化制造互动、提升产品个性化水平;竞争将消减个性化产品供应链的运营绩效,但选择定制一体结构可显著提升竞争力。     

Achieving manufacturing excellence through the integration of enterprise systems and simulation

This paper discusses the significance of the enterprise systems and simulation integration in improving shop floor’s short-term production planning capability. The ultimate objectives are to identify the integration protocols, optimisation parameters and critical design artefacts, thereby identifying key ‘ingredients’ that help in setting out a future research agenda in pursuit of optimum decision-making at the shop floor level. While the integration of enterprise systems and simulation gains a widespread agreement within the existing work, the optimality, scalability and flexibility of the schedules remained unanswered. Furthermore, there seems to be no commonality or pattern as to how many core modules are required to enable such a flexible and scalable integration. Nevertheless, the objective of such integration remains clear, i.e. to achieve an optimum total production time, lead time, cycle time, production release rates and cost. The issues presently faced by existing enterprise systems (ES), if properly addressed, can contribute to the achievement of manufacturing excellence and can help identify the building blocks for the software architectural platform enabling the integration.     

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.