Scheduling with subcontracting options

Department of Logistics2008-2009 > Academic research: refereed > Publication in refereed journalAccepted ManuscriptPublishe

The Lean Concept in the Food Industry: A Case Study of Contract a Manufacturer

The paper discusses how the lean concept could be applied to a food-manufacturing company. The paper first presents the lean concept and value-stream mapping tools. The empirical section discusses how a case company, operating as a contract manufacturer in the food industry, has applied the lean production concept and tools. In the case study, three analysis tools are examined and the structures of demand chains of different customers are presented. The delivery times will decrease and more flexibility will be needed from the contract manufacturer. The case study shows that much movement is possible toward the lean supply chain and partnership-based cooperation. By implementing the lean concept, food companies can increase customer value through cost reduction or through provision of additional value-enhanced services.Agribusiness,

Implementation of virtual manufacturing by a technology licensing company

NoThe paper considers the implementation of a virtual manufacturing system as an alternative to outward technology licensing in a high technology industrial sector. Brief theoretical definition and description of the two strategy options is provided to give background and context. This is followed by empirical material from a longitudinal case study of a company that has developed a virtual manufacturing system in addition to its pre-existing outward technology licensing business stream. A summary account of the company history and development is followed by description of the virtual manufacturing proposal. Analysis of this identified a number of competencies that would be required in order to succeed. The final part of the paper describes the company's response to this analysis and discusses early implementation of the virtual system. It is shown that implementation of the proposal has represented a positive response to the business challenges facing the company

The single machine serial batch production scheduling with outsourcing allowed

Razmatramo nekoliko problema planiranja proizvodnje u serijama s dopuštenom mogućnošću ugovaranja proizvodnje s vanjskim proizvođačem (outsourcing). Postoji mogućnost da se svaki posao obavi na vlastitom stroju ili se ugovori s drugim poduzećem. Cilj je smanjiti ponderirani iznos cijene planirane proizvodnje i ukupne cijene outsourcinga. Razmatramo tri klasične objektivne funkcije programiranja. Prva je ukupno vrijeme izvršenja, druga je maksimalno kašnjenje, a treća je ponderirani broj kasnih poslova. Za svaki problem izvodima učinkovit dinamički algoritam programiranja koji minimalizira ukupni trošak.We consider several serial batch scheduling problems with outsourcing allowed. Each job can be either processed on the in-house machine or outsourced. The objective is to minimize the weighted sum of the scheduling cost and the total outsourcing cost. We discuss three classical scheduling objective functions. The first is the total completion time, the second is the maximum lateness, and the third is the weighted number of late jobs. For each problem, we derive an efficient dynamic programming algorithm that minimizes the total cost

Supply chain management in after sales and subcontract manufacturing processes : Case study: Metso Minerals

Quality of products and services has an important aspect in manufacturing industry. One of the best practices to ensure cost savings in manufacturing industry’s total costs without reducing product’s or service’s quality is achieved by enhancing supply chain management. Supply chain management targets to enhance operations via procurement and logistics actions. Procurement targets to react product’s stock out situations as soon as possible and cost effectively when lo-gistics responsibility is to ensure transport and warehousing the goods. Case company’s supply chain management development has become more needed in after sales and subcontract manufacturing processes since work to these areas have been increased due to increase of demand. These two processes are heavily dependent of effective supply chain man-agement. Operative procurement should be able to react increased demand of goods in as pro-active as possible when logistics must be able to ensure inventory levels and goods dispatching as proactive as possible, so production and product dispatching doesn’t postpone. This thesis purpose is to recognize problems and development targets case company’s after-sales and subcontract manufacturing processes supply chain management area. Thesis’ theory is based on literature and topical scientific articles which deals with procurement, logistics and operational excellence. Empirical study is based to theory of these topics which is implemented with interviews and brainstorms with departments that are associated to after sales and sub-contract manufacturing processes. From these processes, flowcharts are implemented to rep-resent current statuses of these process. From emergence problems of these processes, these flowcharts are developed such as these should be based on this thesis. As results of this thesis problems that have occurred from these processes has been mapped and from occurred problems development solutions are presented to case company for free usage and for possible future research. Development solutions included concrete actions, pro-cess development ideas, implementation of new IT-systems and enhancing the communication platforms

Economies of collaboration in build-to-model operations

This is the final version. Available from the publisher via the DOI in this record.The direct-from-model and tool-less manufacturing process of 3D printing (3DP) embodies a general-purpose technology, facilitating capacity sharing and outsourcing. Starting from a case study of a 3DP company (Shapeways) and a new market entrant (Panalpina), we develop dynamic practices for partial outsourcing in build-to-model manufacturing. We propose a new outsourcing scheme, bidirectional partial outsourcing (BPO), where 3D printers share capacity by alternating between the role of outsourcer and subcontractor based on need. Coupled with order book smoothing (OBS), where orders are released gradually to production, this provides 3D printers with two distinct ways to manage demand variability. By combining demand and cost field data with an analytical model, we find that BPO improves 3DP cost efficiency and delivery performance as the number of 3DP firms in the network increases. OBS is sufficient for an established 3D printer when alternatives to in-house manufacturing are few, or of limited capacity. Nevertheless, OBS comes at the cost of reduced responsiveness, whereas BPO shifts the cost and delivery performance frontier. Our analysis shows how BPO combined with OBS makes 3DP companies more resilient to downward movements in both demand and price levels.Innovate UKEngineering and Physical Sciences Research Council (EPSRC

Organisational design alternatives within international operations networks: a transaction cost perspective

This paper shows, through multiple case studies of Moroccan textile apparel offshore factories, that one organisational design does not fit all within international operations networks. Whereas previous research about managing networks of foreign factories has focused on fully owned production affiliates, a considerable diversity of organisational arrangements is shown to exist. Analysed in the light of transaction cost theory, this diversity suggests that the cost of coordination of foreign factories operating in culturally different countries is high, and has possibly been overlooked in international operations management research. As this paper is primarily a piece of exploratory research, its aim is to document the hybrid arrangements, between markets and hierarchies, that are used by multinationals to cope with coordination costs in practice. Moreover, the potential of 'supply chain outposts', as an organisational innovation used to cope with high coordination requirements, is highlighted

Talented suppliers? Strategic change and innovation in the UK aerospace industry

The 1990s marked the start of extensive re-structuring in the aerospace industry throughout the world. While the ensuing consolidation among prime contractors has been widely researched, the changes affecting the aerospace supply chain have received less attention. This study focuses on the re-structuring taking place within the supply chain of the UK aerospace industry. The findings point to extensive re-structuring. Unlike most earlier studies the lean supply model was found to be a powerful influence, with suppliers moving away from subcontractor status and instead taking on the mantle of ‘talented’ suppliers. While some of the implications of lean supply, in terms of the dynamics of innovation, were not apparent, there were modest signs of increased process innovation on the part of some suppliers