Produktionsmanagement
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[Conference paper]High Resolution Supply Chain Management – Enabling adaptable planning processes
(2007)
Increased competition has continuously led to a shift of production locations from high-wage to low-wage countries. To counteract this development the manufacturing of customized goods at the costs of mass production is necessary. This goal can be reached by solving the polylemma of production. High Resolution Supply Chain Management provides an approach to achieve higher planning efficiency and production profitability by increased flexibility and value orientation of inter- and in-company production planning and control systems. High Resolution Supply Chain Management aims for the establishment of information transparency within supply chains which does not exist in today's production networks. This will assure the availability of goods by local, self-optimizing control loops. Prerequisite is the creation of communication interfaces and data standards. By assuring the information flow and defined control loops High Resolution Supply Chain Management leads to an adaptive and self-optimized production system. In the last few years globalization led to a higher stress of competition of producing companies in high-wage countries. Cost advantages in production, like lower wages and social contributions, result in a relocation of production plants from countries as e.g. the United States or Germany to low-wage countries. Besides the lower wages the higher profitability is due to cost-effective mass production through economies of scale. At the same time customers ask for more individualized and lower priced products lined up with the wish of shorter lead times. Thus, companies have to gain the capability to adapt rapidly to customers requests. Short customer response times, high flexibility in production planning and -control (PPC) and manufacturing are necessary. Thereby, one frequently neglected competitive advantage of production locations in high-wage countries is the customer proximity. Industry now realizes this advantage and strengthens its efforts towards individualized production. A competitive advantage for high-wage countries can therefore be gained if individualized products are produced at nearly the costs of mass production. Thus, the resolution of the polylemma of production is underlying condition for saving labor in high-wage countries.
Outsourcing of logistics operations (especially transportation, distribution & warehousing) is one of the most viable options exercised by the customers to excel in their logistic operations. Despite the growing outsourcing of logistics services to 3PL providers, both the service providers & their customers are facing tremendous problems in synchronizing the business processes & analyzing the performance using common key performance indicators. There is a huge demand for an integrated approach to help 3PL and their customers better synchronize their business processes and have common goals & perspectives. Such integrated approaches often take shape of a process oriented reference model covering many diverse aspects related to the operations & controlling of any business. In this paper, an integrated reference model to support 3PL service operations is presented. The Logistics Reference Model (LRM) developed & validated in some 3PL service companies encompasses standard business processes, performance measurement system and best practices.
In saturated markets companies have to produce individualized products at low costs. In order to produce the high-variety of products efficiently and to be able to react effectively to order-variations, the production process structures must be most flexible and sustainable. Therefore adaptability of planning processes within the company and the supply chain is a precondition. Moreover an adaptive, decentralized control is necessary, which ensures a synchronized process by a flexible information network across all sub-processes. High Resolution Supply Chain Management aims at designing the production system according to the needs of the company’s supply chain environment.
To reach this goal a consistent research methodology has been elaborated. Based on the Viable System Model (VSM) developed by Stafford Beer current production systems are analyzed preliminary in terms of integrity.
With the gained knowledge a complete recursive model of a Viable Production System is developed. The recursive character of the approach allows identifying independent units within production systems on a detailed level. These units are meant to be self-optimizing control units, whereas the purpose of a unit is to independently optimize its part of the production system or production planning process. The architecture allows modelling a decentralized production system that meets all requirements of a flexible, adaptable production system. Thereupon, research focuses on the development of process and control loops for each of the identified units.
Each unit requires specific input information to be able to achieve a maximum degree of planning accuracy within its boundaries. For the communication of different units a flexible information flow has to be secured. Consequently an additional hierarchical and consistent set of objectives is necessary. Only consistent superior objectives can secure local optimization which yields to something like an overall optimum.
By integrating all results into a complete model of a Viable Production System, the adaptability of planning processes is reached due to the decentralized control of the different units, the consistent set of objectives and flexible information network.
Rebound Logistics
(2009)
Today, the flow of product returns is becoming a significant concern for many manufacturing companies. In this research area, three fundamental aspects of product returns need to be taken into consideration: First, companies become increasingly aware of the fact that product returns may offer an opportunity for enormous profit generation and for improving the competitive advantage of a manufacturing company when taking into account the accretive value of the products and technology. Second, the impact of green laws, legislative provisions and the increasing impact of a sustainable production management due to marketing aspects force companies to design and manage the reverse supply chain actively. Third, the importance of managing the reverse supply chains effectively will be enforced by the currently volatile economic climate. This paper outlines first results of designing a methodological framework for implementing an integrative reverse supply chain for manufacturing companies based on a type-specific Reverse Supply Chain Reference Model.
Due to shorter product life cycles the number of production ramp-ups is increasing, while customers have a soaring demand for more variable and individualized products. In the future, optimizing the production ramp-up will become an important differentiation criterion for companies. Considering the whole supply chain in the ramp-up process becomes therefore indispensable. This is what the presented research in this paper concentrates on. The intention of the research project is to develop a model of a supply chain in the production ramp-up stage. Through this model, approaches for optimizing the production ramp-up in the whole supply chain will be derived.
Further the research project concentrates on measuring the production ramp-up performance in the supply chain, showing the impact on economic and financial measures. The result of this research is an approach to align the tasks and objectives of Supply Chain Management with the tasks and objectives of ramp-up management in order to optimize the whole supply chain in the ramp-up stage.
Viable Production System for adaptable and flexible production planning and control processes
(2009)
High Resolution Supply Chain Management (HRSCM) aims at designing adaptable and flexible production planning and control (PPC) processes according to the needs of the company’s supply chain environment. To reach this goal a model for a Viable Production System (VPS) has been elaborated and is presented in this paper. Based on the Viable System Model (VSM) developed by Stafford Beer current production systems are analyzed in terms of integrity. With the gained knowledge a complete recursive framework of a VPS is developed. The framework allows the design of a decentralized production system that meets all requirements of a dynamic environment. Flexible and adaptable PPC processes can be developed for each identified subsystem of the VPS. Hence, further research focuses on the development of process and control loops in order to assure the application of the framework. Exemplarily the decentralised control loop for inventory management is elaborated in a case study.
Supply Chain Management delivers a considerable amount of ideas and methods to design the value stream. Each of these concepts may lead to significant cost reduction and higher service levels. But the same concept does not work for different customers and their diverse needs. Thus, a “one size fits it all” supply chain cannot lead to success. The key to overcome this obstacle is the hybrid supply chain. This paper outlines the application of hybrid system theory to supply chains. After a comprehensive overview of existing methods for the design of supply chains is given, a methodology for a customer-to-customer oriented supply chain design is presented. This approach adopts the hybrid system theory to supply chains which is in a nutshell that hybrid systems use the advantages of its subsystems to reach a superior result to one system alone. Concluding a case study illustrates the application of the methodology.
High Resolution Supply Chain Management (HRSCM) aims to stop the trend of continuously increasing planning complexity. Today, companies in high-wage countries mostly strive for further optimization of their processes with sophisticated, capital-intensive planning approaches. The capability to adapt flexibly to dynamically changing conditions is limited by the inflexible and centralized planning logic. Thus, flexibility is reached currently by expensive inventory stocks and overcapacities in order to cope with rescheduling of supply or delivery. HRSCM describes the establishment of a complete information transparency in supply chains with the goal of assuring the availability of goods through decentralized, self-optimizing control loops for Production Planning and Control (PPC). HRSCM pursues the idea of enabling organization structures and processes to adapt to dynamic conditions. The approach includes the strengths of the existing planning models as well as the process of decision making in organizations. A precondition for this decentralized adaptation is the synchronization of the objectives of the several units or process owners. The basis for this new PPC Model are information transparency, stable processes, consistent customer orientation, increased capacity flexibility and the understanding of the production system as a viable, socio-technical system.
High Resolution Supply Chain Management aims to counteract the trend towards more and more centralised and rigid enterprises. Today, most companies strive to increase efficiency of business processes applying highly sophisticated, centralised planning approaches. These centralised approaches limit the companies’ ability to react flexibly and act adaptively due to external and internal turbulences. In today’s buyer’s markets companies usually try to bypass these turbulences keeping high levels of inventory resulting in a low overall efficiency. High Resolution Supply Chain Management tries to solve the problem at its root from a holistic perspective. Based on the Viable System Model developed by Stafford Beer a four-dimensional holistic production management system model, embedding an organisational structure view, an cause and action view, a control loop perspective and a decision making level has been elaborated. The basis of this model is the integration of all four perspectives into an interacting framework.
Analysis of the Harmonizing Potential of Order Processing Attributes in Spread Production Systems
(2010)
The paper discusses an approach how to measure the competitive advantage of harmonized order processing data by making use of knowledge about the interdependencies between related benefit dimensions. Corresponding harmonization projects are all projects that strive for common structures in product attributes, classification systems or product structures. The main objective of the underlying research work is the development of a method for the estimation of the benefit potential of harmonized order processing data.