The impact of Industry 4.0 implementation on supply chains

Purpose The study aims to analyse the impact of Industry 4.0 implementation on supply chains and develop an implementation framework by considering potential drivers and barriers for the Industry 4.0 paradigm. Design/methodology/approach A critical literature review is performed to explore the key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organisational, technological and legal and ethical. A system dynamics model is later developed to understand the impact of Industry 4.0 implementation on supply chain parameters, by including both the identified driving forces and barriers for this technological transformation. The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains. Findings Industry 4.0 is predicted to bring new challenges and opportunities for future supply chains. The study discussed several implementation challenges and proposed a framework for an effective adaption and transition of the Industry 4.0 concept into supply chains. Research limitations/implications The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains. Practical implications The study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network. Originality/value Simulation analysis provides examination of Industry 4.0 adoption in terms of its impact on supply chain performance and allows incorporation of both the drivers and barriers of this technological transformation into the analysis. Besides providing an empirical basis for this relationship, a new conceptual framework is proposed for Industry 4.0 implementation in supply chains

Knowledge Sharing in Closed-Loop Supply Chain Management

In the recent decades, closed-loop supply chain has been studied extensively due to the increased concern on sustainable development. It integrates forward and reverse flows where the collaborative supply chain takes place. Knowledge management is one important part of an organization that can improve the effectiveness of the processes within the organization. Knowledge sharing is significant in a collaborative supply chain since it affects the organizational performance and competitive advantage. The complexity in closed-loop supply chain can be managed better by encouraging knowledge sharing among the supply chain members. This paper presents a conceptual framework to implement knowledge sharing in a closed-loop supply chain management, for improving the CLSC members’ performance. The success factors have been identified, and a framework has been presented, it consists of knowledge flows, management aspect and socio-technical aspec

Fully automated urban traffic system

The replacement of the driver with an automatic system which could perform the functions of guiding and routing a vehicle with a human's capability of responding to changing traffic demands was discussed. The problem was divided into four technological areas; guidance, routing, computing, and communications. It was determined that the latter three areas being developed independent of any need for fully automated urban traffic. A guidance system that would meet system requirements was not being developed but was technically feasible

The effect of the supply chain in the quick response manufacturing (QRM) environment in the automotive industry

The manufacturing industry is having an issue regarding the quality of the company's planning to produce efficient performance throughout the year. The improvement needs to be carried out to give customers considerable satisfaction regarding the quality of the products and the delivery time. As the manufacturing industry evolves throughout the decades, the demands are becoming more challenging: faster delivery and better quality of products. The markets will interrupt a good supply chain of a company. The Quick Response Manufacturing (QRM) approach significantly benefits companies whose focus is on lead time reduction. This study aims to reduce the lead time and to improve the supply chain of a selected automotive production line by using Witness software simulation. The improvement also sought to implement the Just-In-Time (JIT) inventory management method. The data collected from company X is simulated to get the percentage of idle, blocked, and overall process time. By using the data from the selected line, the improvement of the overall process time is 27.5%, meaning that the company is ready to implement the JIT inventory management method

Enterprise design for dynamic complexity : architecting & engineering organizations using system & structural dynamics

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004.Vita.Includes bibliographical references (v. 2, leaves 291-308).As the business world is neither linear nor static, the mastery of its "chaotic" nonlinear dynamics lies at the heart of finding high-leverage policies that return uncommon benefits for marginal costs. Today's global enterprises are dynamically complex socio-technical systems where cause and effect of management's strategies and policies are distant in space and time. Spatial complexity recognizes that correctly defining the limits of the extended enterprise is essential in maximizing shareholder value via stakeholder management. Temporal complexity recognizes that policies, decisions, structure and delays are interrelated to influence growth and stability. An enterprise's long-term success therefore is a function of management's ability to control this "dynamic complexity". The goal of this thesis is to develop management insights into "enterprise design", i.e. to create more successful management policies and organizational structures. Enterprise design can be decomposed into the science and art, or engineering and architecting. Using the heretofore-separate academic fields of system dynamics and structural dynamics, an attempt is made to define the scientific "laws" of enterprise physics that will then be used to construct non-obvious, often counter-intuitive enterprise architectures. The goal is to combine the methodologies from the "business of building" with the "building of business", in an attempt to draw lessons from the design of high-rise buildings for the design of high-rising enterprises. Throughout this thesis, examples of a variety of socio-technical enterprises are discussed in order to explore and test the principles and insights developed herein. There is however a unifying case study(cont.) used throughout of one of the world's most dynamically complex socio-political-technical enterprises: the Commercial Airplanes enterprise of The Boeing Company. This thesis uses the approaches of system and structural dynamics to explore Boeing's stability, growth, market share and profitability.by Theodore F. Piepenbrock.S.M.M.B.A

A Contingency Approach for Supply Chain Preparedness to Pursue Circular Economy Business Models

A growing stream in circular economy (CE) research is about circular economy business models (CEBM). It suggests how firms could learn to adopt unique material and product designs, newer business models, value chain networks and potential enablers that satisfies CE ideologies about economic, environment, and society. However, the understanding about how firms could integrate CEBM practices at internal, supply chain, and external levels is limited. Given the rising complexities in supply chains, the goal of this dissertation is to: (a) understand the landscape of CE concepts within the supply chain management context, and consequently (b) comprehend how firms’ preparedness about their internal, end-to-end supply chains and external environment, help them in pursuing business models that are guided by CE principles. In this dissertation, the first study provides an inclusive understanding of CE in a supply chain management context using bibliometric-network analysis. One key insight suggests CEBM is a promising theme within CE but remains unexplored in supply chain context. Using contingency theory lens, the second study identifies factors related to a focal firm’s CEBM practice as the response, its contingencies as context, its supply chain preparedness as output, and its CEBM performance as a consequent outcome. Using multi-industry multi-tier supply chain case-study method, the study explores how supply chain preparedness is related to CEBM practices and CEBM performance, and the factors upon which this relationship is contingent. A set of propositions and a contingency research framework is proposed. The research implications shall benefit scholars of transdisciplinary interests and serve as a guiding tool for practitioners and consultants presently acting upon CEBM implementation in their supply chain systems

Modular product development for mass customization

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The impact of Catena-X on digital business models in the automotive industry

Like many other manufacturing industries, the automotive industry is also affected by the consequences of the climate crisis and is required to ensure greater sustainability. Corresponding laws and standards are continuously coming into force and require new methods of implementation. A shared network that supports standardized verification and facilitates communication among participants is the industry's answer. Promoted by the German government, the expectation is to better equip the industry for an increasingly digital, global market. The emergence of open data ecosystems such as Catena-X in the automotive industry creates new opportunities for value creation by extending existing, or creating new Business Models. Catena-X is an open data ecosystem that connects the supply chain and creates value through increased transparency, which in turn leads to sustainability in the industry. Companies that are part of the automotive supply chain can thereby profitably contribute their data, creating benefits for the entire network. The research in this thesis is based on five semi-structured interviews with experts from the German automotive industry. The responses enable the identification of current developments, including the merging of production and service as a Business Model, but also a transformation of smaller companies that are adapting to the digital age in order to benefit from the new opportunities for value creation. This study places itself in a comparatively early phase of Catena-X and shows possible paths for further research, especially with regard to sustainability, which provides a solid basis for value creation on a social, environmental, and economic level.Tal como muitas outras indústrias transformadoras, a indústria automóvel também é afectada pelo impacto da crise climática e é necessária para assegurar uma maior sustentabilidade. As leis e normas correspondentes estão continuamente a entrar em vigor e exigem novos métodos de implementação. Uma rede partilhada que apoia a verificação normalizada e facilita a comunicação entre os participantes é a resposta da indústria, também promovida pelo governo alemão, com a expectativa de melhor equipar a indústria para um mercado cada vez mais digital e global. A emergência de ecossistemas de dados abertos, como o Catena-X na indústria automóvel, cria novas oportunidades para a criação de valor, alargando os modelos de negócio existentes ou criando novos modelos de negócio. Catena-X é um ecossistema de dados aberto que liga a cadeia de fornecimento e cria valor através de uma maior transparência, o que por sua vez conduz à sustentabilidade na indústria. As empresas que fazem parte da cadeia de abastecimento automóvel podem assim contribuir de forma rentável com os seus dados e criar benefícios para toda a rede. A investigação desta tese baseia-se em cinco entrevistas semi-estruturadas com peritos da indústria automóvel alemã. As respostas permitem uma identificação dos desenvolvimentos actuais, incluindo a fusão da produção e do serviço como modelo de negócio, mas também uma transformação das empresas mais pequenas que se estão a adaptar à era digital, de modo a beneficiar das novas oportunidades de criação de valor. Este estudo está localizado numa fase relativamente precoce de Catena-X e mostra possíveis caminhos para uma maior investigação, especialmente no que diz respeito à sustentabilidade, que fornece uma base sólida para a criação de valor a nível social, ecológico e económico