Relations between cells in cellular manufacturing

The paper considers a (static) portfolio system that satisfies adding-up contraints and the gross substitution theorem. The paper shows the relationship of the two conditions to the weak dominant diagonal property of the matrix of interest rate elasticities. This enables to investigate the impact of simultaneous changes in interest rates on the asset demands.

Strategic and Operational Management of Supplier Involvement in New Product Development: a Contingency Perspective

This paper examines how firms succeed to leverage supplier involvement in product development. The paper extends earlier work on managing supplier involvement by providing an integrated analysis of results, processes and conditions both at the level of individual development projects and the overall firm. Following a multiple-case study approach with theoretical sampling, the study is carried out by examining eight projects in which four manufacturers from different industries involve multiple suppliers. The findings suggest that successful supplier involvement is dependent on the coordinated design, execution and evaluation of strategic, long-term processes and operational, short-term management processes and the presence of enabling factors such as a cross-functional oriented organization. The required intensity of these processes and enablers depends on contingencies such as firm size and environmental uncertainty. In contrast with previous research, we find no indications that managing supplier involvement requires a different approach in highly innovative projects compared to less innovative projects.innovation;new product development;purchasing;supplier relations;R&D management

The Challenges of the European Automotive Industry at the Beginning of the 21st Century. Summary of the main findings of the CoCKEAS project

The paper presents the main conclusions of the CoCKEAS European project (Coordinating Competencies and Knowledge in the European Automobile System). It analyses the main changes in the organisation of the European automotive system, not only in the relationships between carmakers and their first tier suppliers, but also in the relations they have with the other actors (upstream and downstream). It discusses the issues associated to the intangible dimension of this industry (financialisation and services), its new geography, and, finally, its distinctivness compared with is competitors (USA and Japan).: automobile industry, Europe, financialisation, interfirm relationships, Japan, location, modular production, services, system, USA

Exploiting supplier capabilities to maximise product design opportunities in the fuzzy front end activities

This paper explores the Fuzzy Front-End (FFE), i.e. the first phase of the Product Design and Development process where a company formulates a product concept to be developed and decides whether or not to invest resources in the further development of an idea. Our goal is to understand how companies leverage supply chain capabilities to improve product design opportunities in order to obtain optimized product concepts in the FFE. From the analysis of our pilot study, the results suggest that FFE is organized differently depending on design requirements and supply chain capabilities and that matching design requirements with supplier capabilities during the FFE improves performance. Therefore, the findings indicate that the proposed Conceptual Framework has the potential to be used by companies to design their FFE and to enhance the use of supply chain capabilities in their product design activities

Sustainable development strategies for product provision and manufacturing approaches

Manufacturing firms are under many pressures both financially and competitive which focus attention on the performance of their manufacturing processes. In this paper the opportunities for improving the environmental impact of products within the constraints of existing manufacturing infrastructure are examined. Approaches which support sustainability in two aspects are proposed, firstly, the provision of products to the users in ways which extend the product life and secondly, manufacturing approaches which reduce resource usage. The provision and manufacture of products in ways that are truly sustainable are inhibited by three issues: firstly, decisions are predominantly made solely from the perspective of the “vendor” (and do not consider the wider perspective); secondly, that generally the scope of business planning is still rooted in production/manufacturing costs (and not consumption costs) and thirdly, the current performance measures (e.g. KPIs) mainly focus on profitability. The rationale for this conference paper is the argument that there is a need to raise the awareness during the earliest stages of business planning that there may be alternative approaches which are more sustainable. The concepts presented here will underpin further research into performance measures which encompass sustainability and resulting business planning implications

Dynamic Multi-Agent Based Variety Formation and Steering in Mass Customization

Large product variety in mass customization involves a high internal complexity level inside a company’s operations, as well as a high external complexity level from a customer’s perspective. To cope with both complexity problems, an information system based on agent technology is able to be identified as a suitable solution approach. The mass customized products are assumed to be based on a modular architecture and each module variant is associated with an autonomous rational agent. Agents have to compete with each other in order to join coalitions representing salable product variants which suit real customers’ requirements. The negotiation process is based on a market mechanism supported by the target costing concept and a Dutch auction. Furthermore, in order to integrate the multi-agent system in the existing information system landscape of the mass customizer, a technical architecture is proposed and a scenario depicting the main communication steps is specified.Product Configuration, Mass Customization, Variety Formation and Steering, Multi Agent System

Production planning and control of closed-loop supply chains

More and more supply chains emerge that include a return flow of materials. Many original equipment manufacturers are nowadays engaged in the remanufacturing business. In many process industries, production defectives and by-products are reworked. These closed-loop supply chains deserve special attention. Production planning and control in such hybrid systems is a real challenge, especially due to increased uncertainties. Even companies that are engaged in remanufacturing operations only, face more complicated planning situations than traditional manufacturing companies.We point out the main complicating characteristics in closed-loop systems with both remanufacturing and rework, and indicated the need for new or modified/extended production planning and control approaches. An overview of the existing scientific contributions is given. It appears that we only stand at the beginning of this line of research, and that many more contributions are needed and expected in the future.closed-loop supply chains;Production planning and control

The Economics Of System Integration: Toward An Evolutionary Interpretation.

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Change, Coordination, and Capabilities

Empirical studies on coordination of economic activities focused on the two polar cases of governance mode, namely vertical integration and market exchanges. Whether firms should be vertically integrated or lever market exchanges in the face of change is, however, debated. Two positions have emerged. Some scholars argue that the vertically integrated firm is the appropriate mode of coordination when change occurs, while market exchanges are more appropriate for dealing with stable contexts (Teece, 1996). On the other hand, Harrigan (1984, 1985) contends that firms should rely on market exchanges when technological change renders upstream capabilities obsolete. Based on two case studies of the aircraft engine industry, this paper introduces the concept of systems integration as the primary coordination mechanism in-between markets and hierarchies that firms employ to cope with change. The focus is on multitechnology settings. Multitechnology, multicomponent products intensify the coordination efforts for firms developing them and therefore provide a vantage point to study coordination modes in the face of technological change. The paper argues that systems integration, as a coordination mechanism, comprises a set of different technological and organizational skills, ranging from component assembly through the understanding and integration of the technological disciplines underlying a product, to project management. It shows that from a competitive point of view, systems integration is most appropriately understood as knowledge integration. Systems integrating firms are understood as those organizations that set up the network of actors involved in the industry and lead it from an organizational and technological viewpoint.technological change, systems integration, knowledge integration, vertical integration, market exchanges