Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization for build-to-order supply chain management (BTOSCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting multiobjective optimization (MOO) techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted and future research directions to better exploit the decision support capabilities of MOO are proposed

Decision support for build-to-order supply chain management through multiobjective optimization

This is the post-print version of the final paper published in International Journal of Production Economics. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.This paper aims to identify the gaps in decision-making support based on multiobjective optimization (MOO) for build-to-order supply chain management (BTO-SCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting MOO techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted. Future research directions to better exploit the decision support capabilities of MOO are proposed. These include: reformulation of the extant optimization models with a MOO perspective, development of decision supports for interfaces not involving manufacturers, development of scenarios around service-based objectives, development of efficient solution tools, considering the interests of each supply chain party as a separate objective to account for fair treatment of their requirements, and applying the existing methodologies on real-life data sets.Brunel Research Initiative and Enterprise Fund (BRIEF

Balancing Demand and Supply in Complex Manufacturing Operations: Tactical-Level Planning Processes

By balancing medium-term demand and supply, tactical planning enables manufacturing firms to realize strategic, long-term business objectives. However, such balancing in engineer-to-order (ETO) and configured-to-order (CTO) operations, due to the constant pressure of substantial complexity (e.g., volatility, uncertainty, and ambiguity), induces frequent swings between over- and undercapacity and thus considerable financial losses. Manufacturers respond to such complexity by using planning processes that address the business’s needs and risks at various medium-term horizons, ranging from 3 months to 3 years. Because the importance of decision-making increases exponentially as the horizon shrinks, understanding the interaction between complexity and demand-supply balancing requires extending findings reported in the literature on operations and supply chain planning and control. Therefore, this thesis addresses complexity’s impact on planning medium-term demand-supply balancing on three horizons: the strategic– tactical interface, the tactical level, and the tactical–operational interface.To explore complexity’s impact on demand–supply balancing in planning processes, the thesis draws on five studies, the first two of which addressed customer order fulfillment in ETO operations. Whereas Study I, an in-depth single-case study, examined relevant tactical-level decisions, planning activities, and their interface with the complexity affecting demand–supply balancing at the strategic–tactical interface, Study II, an in-depth multiple-case study, revealed the cross-functional mechanisms of integration affecting those decisions and activities and their impact on complexity. Next, Study III, also an in-depth multiple-case study, investigated areas of uncertainty, information-processing needs (IPNs), and information-processing mechanisms (IPMs) within sales and operations planning in ETO operations. By contrast, Studies IV and V addressed material delivery schedules (MDSs) in CTO operations; whereas Study IV, another in-depth multiple-case study, identified complexity interactions causing MDS instability at the tactical–operational interface, Study V, a case study, quantitatively explained how several factors affect MDS instability.Compiling six papers based on those five studies, the thesis contributes to theory and practice by extending knowledge about relationships between complexity and demand–supply balancing within a medium-term horizon. Its theoretical contributions, in building upon and supporting the limited knowledge on tactical planning in complex manufacturing operations, consist of a detailed tactical-level planning framework, identifying IPNs generated by uncertainty, pinpointing causal and moderating factors of MDS instability, and balancing complexity-reducing and complexity-absorbing strategies, cross-functional integrative mechanisms, IPMs, and dimensions of planning process quality. Meanwhile, its practical contributions consist of concise yet holistic descriptions of relationships between complexity in context and in demand– supply balancing. Manufacturers can readily capitalize on those descriptions to develop and implement context-appropriate tactical-level planning processes that enable efficient, informed, and effective decision-making

A Mathematical Approach to Paint Production Process Optimization

As the global paint market steadily grows, finding the most effective processing model to increase production capacity will be the best way to enhance competitiveness. Therefore, this study proposes two production environments commonly used in the paint industry: build-to-order (BTO) and the variation of a configuration-to-order (CTO), called group production, to schedule paint production. Mixed-Integer Linear Program (MILP) was solved using genetic algorithms (GA) to analyze two production environments with various products, different set-up times, and different average demand for each product. The models determine the number of batches, the size and product of each batch, and the batch sequence such that the makespan is minimized. Several numerical instances are presented to analyze the proposed models. The experimental results show that BTO production completes products faster than group production when products are simple (low variety). However, group production is more applicable to manufacturing diverse products (high variety) and mass production (high volume). Finally, the number of colors has the most significant impact on the two models, followed by the number of product types, and finally the average demand

Product portfolio management as part of product lifecycle management for configure-to-order products

Abstract. Product portfolio management (PPM) research has mainly focused on PPM practices by covering the early stage of the lifecycle and not the whole lifecycle of the product. In addition, lifecycle management has been applied to individual products rather than the entire product portfolio. In this thesis, PPM research focuses on both all lifecycle phases and the entire product portfolio rather than only individual products. The research aims to study how configurable products should be arranged in the case company’s future Product lifecycle management (PLM) system. The case company of the thesis is Valmet Flow Control Oy, which delivers flow control technologies and services for different industries. The current Product data management (PDM) system in use is no longer supported and it is seen that the PDM system does not support the company’s needs anymore. Therefore, a new PLM system is needed to cover future demands in the case company. The product portfolio is composed of a product series, which refers to a certain product type and model. This thesis focuses on configure-to-order (CTO) products, which are configured based on customers’ needs with pre-defined specifications. This thesis proposes, how to present product series level object in the PLM system and what kind of product data it contains. The main result of the research is the created product series object in the future PLM system and how to manage product series through their lifecycle in one centralized system with all internal stakeholders. The availability, traceability, and data use are also essential results. Appropriate exploitation of data allows to reveal the most critical information, enabling the management of the whole product portfolio from one PLM system. This kind of procedure creates transparency in the product portfolio.Tuoteportfolion hallinta osana tuotteen elinkaaren hallintaa tilauksesta määritettäville tuotteille. Tiivistelmä. Tuoteportfolion hallinnan (PPM) tutkimukset ovat pääasiassa keskittyneet PPM:n käytäntöihin elinkaaren alkuvaiheessa eikä tuotteen koko elinkaaren hallintaan (PLM). Lisäksi PLM:ää on sovellettu yksittäisten tuotteiden tasolla eikä niinkään koko tuoteportfolion tasolla. Tässä diplomityössä PPM:n tutkimus keskittyy sekä koko tuotteen elinkaaren vaiheisiin että koko tuoteportfolioon yksittäisten tuotteiden sijasta. Tutkimuksen tarkoituksena on tutkia kuinka konfiguroitavat tuotteet pitäisi järjestellä tulevaan PLM-järjestelmään tapausyrityksessä. Diplomityön tapausyrityksenä on Valmet Flow Control Oy, joka toimittaa virtauksensäätöratkaisuja ja -palveluja eri teollisuudenaloille. Nykyistä käytössä olevaa tuotetiedonhallinta järjestelmää (PDM) ei enää ylläpidetä eikä PDM-järjestelmä tue yrityksen tarpeita enää. Tästä johtuen PLM-järjestelmää tarvitaan, jotta voidaan kattaa tulevaisuuden tarpeet tapausyrityksessä. Tuoteportfolio koostuu tuotesarjoista, joilla viitataan tiettyyn tuotetyyppiin ja malliin. Tämä diplomityö keskittyy tilauksesta määritettäviin tuotteisiin eli konfiguroitaviin tuotteisiin, jossa tuote konfiguroidaan asiakkaan tarpeiden mukaisesti ennalta määrättyjen spesifikaatioiden avulla. Tässä työssä esitetään kuinka tuotesarjatason objekti kuvataan PLM-järjestelmässä ja mitä tuotetietoja sille tarvitaan. Tutkimuken päätuloksena luodaan tuotesarjaobjekti tulevaisuuden PLM-järjestelmään ja tehdään kehitysehdotus siitä, kuinka tuotesarjoja tulisi hallita niiden koko elinkaaren ajan yhdessä järjestelmässä, ja kaikkien sisäisten sidosryhmien kanssa. Tiedon saatavuus, jäljitettävyys sekä hyödyntäminen ovat myös pääasiallisia työn tuloksia. Tiedon oikeanlainen hyödyntäminen mahdollistaa kriittisimmän tiedon esittämisen ja siten mahdollistaa koko tuoteportfolion hallinnan yhdestä PLM-järjestelmästä

Sales & operations planning in complex business-to-business planning environments

Abstract. Sales & operations planning (S&OP) is a tactical planning process to balance company’s demand and supply. Increasing demand volatility has made S&OP very topical. Business-to-business (B2B) manufacturing with high product variation sets high requirements for S&OP processes and tools. Digitalization has created lots of hype around integrated business planning, which might have raised unjustified benefit expectations for S&OP deployment. In order to deploy S&OP process, it is important to recognize its core purpose and its plausible benefits, to avoid deployment failures caused by the lack of knowledge. This thesis aims to provide S&OP knowledge for complex business to business manufacturing. The qualitative research conducts literature review, and investigates tactical planning processes of three case companies, and current S&OP tool offering of five vendors through semi-structured interviews. From the aim of this thesis, three research questions were conducted: RQ1: What are the desired outcomes of S&OP? RQ2: What aspects of business are expected to be improved by S&OP process and tool deployment according to case companies? RQ3: How do the identified S&OP process models and tools compare with the case companies’ expectations? Following answers to research questions were found: RQ1:S&OP can be defined as a systematic tactical planning process to enhance collaborative target setting, vertical and horizontal integration, visibility creation, and performance management. By combining the different outcomes in different situations, the ultimate desired outcome seems to be the ability to consider all necessary factors in tactical planning. Answer to this research question is derived from the literature review, and it reflects to other research questions. RQ2: Visibility creation, demand forecasting, supply planning, financial planning, scenario planning, internal collaboration, external collaboration, product portfolio management and after sales services were high level requirements derived from the case companies’ specific expectations in the empirical study. RQ3: Identified S&OP process and tools support the major parts of case company expectations, although when having a closer look of some of the case companies’ specific external collaboration, and supply planning aspects, case companies have some unplausible expectations for S&OP tools. Managerial implications: In the early phases of S&OP deployment, companies should mainly focus on designing the process, rather than tool consideration. Only after the suitable process is established, companies should utilize advanced planning tools. The tactical planning tool vendors might emphasize high customizability or high optimization capabilities. These aspects might be trade-offs which companies should be aware. Platform flexibility allows non-standard process designs, and industry specific S&OP practices enables optimization to maximize results by S&OP specific tools. Scientific implications: This study investigates companies operating in B2B business that are utilizing make-to-order production strategy’s variants. Study provides insights of companies planning environments requirements and their desired outcomes of S&OP deployments. Study pointed out the conflicts between S&OP methods and quick response make-to-order strategies in high product variety environments, which indicates that besides evaluating S&OP’s design for planning environments at deployment, evaluation of S&OP methods’ suitability to company specific strategies should be highly considered.Sales & operations planning vaativissa yritykseltä-yritykselle-markkinan valmistusympäristöissä. Tiivistelmä. Sales & operations planning (S&OP) on taktisen suunnittelun prosessi yrityksen kysynnän ja tarjonnan tasapainottamiseksi. Kasvanut kysynnän vaihtelu on tehnyt S&OP:sta erittäin ajankohtaisen. Vaatimukset S&OP prosesseille ja työkaluille ovat korkeat, kun yritys valmistaa useita erilaisia tuotteita yritysmyyntiin. Digitalisaatio on kasvattanut kiinnostusta integroitua liiketoimintasuunnittelua kohtaan, minkä vuoksi S&OP:ta kohtaan on voinut syntyä katteettomia hyötyodotuksia. S&OP-prosessin käyttöönotossa on tärkeää tunnistaa sen päätarkoitus ja mahdolliset hyödyt, jottei implementointi epäonnistuisi tiedonpuutteen vuoksi. Tämän työn tarkoitus on tuoda tietoa S&OP:sta vaativissa yritykseltä-yritykselle-markkinan valmistusympäristöissä. Tässä kvalitatiivisessa tutkimuksessa koostetaan kirjallisuuskatsaus, tutkitaan kolmen case-yrityksen taktista suunnittelutoimintaa, sekä tutkitaan nykyistä S&OP-työkalutarjoamaa viiden järjestelmätoimittajan avulla. Case-yritykset ja järjestelmätoimittajat haastatellaan puolistrukturoiduilla haastatteluilla. Tutkimuksen tueksi on koostettu kolme tutkimuskysymystä: TK1: Mitä ovat S&OP-prosessin odotetut hyödyt? TK2: Mitä osa-alueita case-yritykset odottavat S&OP-prosessin ja työkalujen parantavan? TK3: Kuinka tunnistetut S&OP-mallit ja työkalut tukevat case-yritysten parannusodotuksia? Tutkimuskysymyksiin löydettiin seuraavat vastaukset: TK1: S&OP voidaan määritellä systemaattiseksi taktisen suunnittelun prosessiksi, joka vahvistaa yhteistä tavoitteiden asettamista, vertikaalista ja horisontaalista integraatiota, näkyvyyden luomista ja suorituskyvynjohtamista. Yhdistämällä erilaisia mahdollisia hyötyjä erilaisissa tilanteissa, suurin tavoiteltava hyöty olisi kyky ottaa huomioon kaikki tärkeimmät lopputulokseen vaikuttavat osatekijät taktisessa suunnittelussa. TK2: Näkyvyyden luominen, kysynnän ennustaminen, tuotannon- ja hankinnansuunnittelu, finanssisuunnittelu, skenaariosuunnittelu, sisäinen yhteistyö, ulkoinen yhteistyö, tuoteportfolion hallinta ja jälkimarkkinointi — palvelut ovat tunnistettuja ylätason osa-alueita, joita yritykset odottavat S&OP-prosessin ja työkalujen parantavan. TK3: S&OP prosessit ja työkalut tukevat pääosin yritysten odotuksia, mutta yrityksillä on eräitä spesifisiä ulkoisen yhteistyön ja toimitusketjun suunnittelutoiminnan odotuksia, joita ne eivät tue. Käytännön implikaatiot: S&OP-prosessien käyttöönottovaiheessa yritysten kannattaa ennemmin keskittyä prosessin suunnittelun, kuin työkalujen hankkimiseen. Vasta kun yrityksellä on vakiintunut S&OP-prosessi, yrityksen kannattaa pohtia kehittyneempien suunnittelujärjestelmien hankkimista. Suunnittelutyökalujen järjestelmäntoimittajat saattavat korostaa tuotteidensa räätälöityvyyttä tai optimointikyvykkyyttä. Välttämättä näiden molempien ominaisuuksien tuomia hyötyjä ei voida saavuttaa samassa järjestelmässä. Järjestelmän joustavuus sallii joustavamman rakenteen taktiseen suunnitteluprosessiin, kun taas optimointikyvykkäät järjestelmät nojautuvat toimialan suositeltuihin S&OP-prosessimalleihin. Tieteelliset implikaatiot: Tutkimus esittelee kompleksisissa ympäristöissä toimivien yritysten tarpeita S&OP-prosessille. Tutkimuksessa todettiin ristiriita nopean asiakasvasteen strategian, ja S&OP-metodien välillä, kun yrityksen tuotetarjoama on erittäin suuri, ja kaikki valmistettavat tuotteet ovat asiakasspesifisiä. Tämä viittaisi siihen, että toimivaan S&OP-prosessin rakenteeseen ei vaikuta voimakkaasti vain suunnitteluympäristö, vaan myös yrityksen strategia

Modular Crates – A Holistic Design Approach for Optimizing Cube Size in Industrial Packaging

Global market is a field where all industries strive to provide personalized product for every customer demand in order to compete with their competitors in the business battlefield. Product personalization varies with customer to customer which increases the product variety. When the product size variability is vast, producing packages for every individual product is not only difficult but also increases the design time, production time, total manufacturing cost and inventory cost. For the present scenario, Industrial packages does not opt customizability for variable product sizes. Customized package for personalized product is achievable only by redesigning the existing distribution package with modularity and adaptability functions which helps to reduce space wastage on logistical distribution and warehousing ultimately leading to proper cube utilization. In this paper, by analyzing the production feasibility and manufacturing strategy, new innovative re-engineered industrial package designs with customizability functions are developed and are evaluated by introducing a matrix called Collaborative Design Performance (CDP) Matrix. From the matrix and order penetration point (OPP) analysis, it is evident that the re-engineered designs adopt process commonality and postponement in an effective way

Hockey Stick Phenomenon: Supply Chain Management Challenge In Brazil

The objective of this study is to investigate a phenomenon that occurs in Brazil, specifically the spike in demand at the end of the sales period, known as the hockey stick phenomenon. This analysis will encompass the causes as well as the impacts of this phenomenon, in a way that allows alternative policies to be evaluated. Data was collected from a Brazilian branch of a large multinational in the non-durable consumer goods industry and in semi-structured interviews conducted face-to-face with executives of 26 clients. The data was used to generate a continuous simulation model based on the methods of systems dynamics. The findings showed that the phenomenon negatively impacted the manufacturer's financial performance in the long term and indicated required changes necessary to remediate the phenomenon. This is an empirical study on the hockey stick phenomenon, a problem that affects diverse companies in Brazil. 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Polidrone – Business Plan of a multipurpose modular drone produced via FDM

El TFG, realizado conjuntamente con la oficina I3P del Politécnico de Turín, constituye un Plan de Negocio para un dron creado y patentado por una serie de personas vinculadas al Politécnico de Turín con el fin de evaluar su viabilidad. La primera fase del Proyecto fue la definición de los casos de uso o nichos de mercado para los que iba destinado el dron. Para ello se tuvo que tener una absoluta comprensión mecánica del dron, destacando nuestras ventajas competitivas. También se realizó una serie de encuestas, entrevistas y análisis de mercado. Tomando como base los casos de uso elegidos, se realizó el Plan de Negocio completo. El cual analiza los puntos fuertes del dron, los segmentos y el tamaño de mercado, los clientes potenciales, la forma de comercialización, su distribución y venta, su promoción, fijar el precio, los proveedores, los materiales y equipos necesarios, su plan de financiación y beneficios esperados en 5 años, análisis de la competencia, etc. Finalmente, el Plan de Negocio fue presentado como concursante en una competición regional de proyectos innovadores. La START CUP Piemonte-Valle d’Aosta.Departamento de Ciencias de los Materiales e Ingeniería Metalúrgica, Expresión Gráfica en la Ingeniería, Ingeniería Cartográfica, Geodesia y Fotogrametría, Ingeniería Mecánica e Ingeniería de los Procesos de FabricaciónGrado en Ingeniería Mecánic