Organizing a virtual manufacturing enterprise: an analytic network process based approach for enterprise flexibility

Virtual manufacturing is a dynamic enterprise structure that will enable future competitiveness in the fast changing business environment. This is made possible through quick IT based integration of flexible and core competent business entities capable of providing value-added product and services. Flexibility elements represent change capabilities of enterprise wide processes and resources in time and cost dimensions. Value chain considerations require synergy among the participating flexible resources. Also decision information synchronization delays need to be managed so that other entity flow processes in the enterprise remain well synchronized. This may require a capability of dynamic changes in flexible structures leading to effective virtual enterprises. There is a need to develop suitable enterprise architectures for virtual enterprises that offer an increasing focus on agility. Infrastructure support for integration of flexible capability to attain synergy among resources is necessary for enterprise agility. We conceptualize virtual manufacturing (VM) as an integrating infrastructure of flexible resources made possible through alliance of enterprises that are individually core competent in specific business function. Such a VM can attain the required cost, flexibility and responsiveness characteristics in its operations to provide solution to the demanding customer in a global dynamic market. Modelling frameworks depicting these composite flexibility states have complex and tacit interrelationship with plural business goals. Analytical network process (ANP) has been used to model the interrelationship of different decision domains with a view to prioritize enterprise wide flexibility dimensions. The ANP modelling framework takes into consideration the interdependency among sub-strategies. We demonstrate through sensitivity analysis that strategic shift is required to accommodate changes due to dynamic condition in the business environment.     

Flexibility in manufacturing enterprises

A manufacturing enterprise is a collection of interrelated, flexible, optimized business processes delivering value to the customers through high quality products and services, faster than competition. This view of an enterprise enables one to consider the entire business system including the suppliers, product development, manufacturing, logistics, distribution, and retailing and to smoothen out the interfaces between them. Performance measures and performance measurement are important for monitoring, control and management. We identify and discuss eight performance measures for generic business processes. These include lead time, customer service, dependability, quality, flexibility, cost, capacity, and asset utilization. In this paper, we concentrate on flexibility of business processes with special emphasis on the supply chain and order-to-delivery processes. We attempt to provide clear definitions and measures of various types of flexibilities as well as discuss the relationship between product structure and supply chain flexibility. The relationship between uncertainties, flexibility, technology, and product structure is clearly brought out in this paper.     

Selective laser melting raw material commoditization: impact on comparative competitiveness of additive manufacturing

The paper analyses the impact of cheaper metal powder supplies on the comparative competitiveness of additive manufacturing (AM). By utilising two case studies, we compare the economic impact of an innovative titanium extraction method on Selective Laser Melting (SLM) and conventional methods of machining and casting. A switch-over analysis identifies the production quantities above which conventional manufacturing is more cost competitive than additive manufacturing. This analysis is performed for current raw material as well as cheaper raw material supply. The results illustrate the improved comparative competitiveness of SLM as the titanium supply is commoditised and more readily available in powder form. The responsiveness of the supply chain is improved as the switch-over point between SLM and conventional methods increases. Moreover, as the raw material supply chain for titanium is transformed through the use of this novel extraction method, the manufacturing supply chain is simplified.     

A review on manufacturing flexibility

Flexibility has become one of the most useful and necessary tool in today’s competitive markets. Manufacturing flexibility is widely recognised as a critical component to achieving a competitive advantage in the market place. It is one of the most sought after properties for manufacturing enterprises and has aroused considerable interest among researchers and professionals. This paper presents a review of various issues related with manufacturing flexibility specifically concept, need, dimensions, measurement, relationship among various dimensions, implementation aspect in a company and management of manufacturing flexibility and its aim to contribute to the conceptual systemisation of the material.     

Product recovery optimization in closed-loop supply chain to improve sustainability in manufacturing

When business practices shift from a traditional open supply chain to a closed loop instead, the environmental and societal issues are efficiently integrated in business development. However, even an efficiently integrated shift introduces a number of trade-offs due to the contradictory goals that emerge from that business’s economical, environmental and social dimensions. In this paper, we propose a multi-objective mixed integer mathematical problem for a generic closed-loop supply chain (CLSC) network to rationalise how a system’s product recovery helps to improve manufacturing sustainability. The CLSC network proposed in this study consists of a hybrid manufacturing facility, warehouse, distribution centres, collection centres and a hybrid recovery facility (HRF). The proposed model determines the best location for the HRF and optimal flow of products, recovered parts and material in the network while it simultaneously maximises profit, saves activity costs, helps to decrease the harmful effects of the manufacturing process and makes a positive impact on societal development. To validate the model, a numerical illustration with the help of a case study from an electrical manufacturing industry is offered. The results authenticate the approach of the model towards the fulfilment of various environmental regulations. A sensitivity analysis, completed on demand, and the return rate also assists decision-makers to manage their decisions with a broader insight towards manufacturing sustainability.     

A Citation Analysis of the Research on Manufacturing and Supply Chain Flexibility

Manufacturing and supply chain flexibility has been discussed extensively in the scientific literature. Given the different definitions, types and dimensions of flexibility, the purpose of this paper is to explore the origins and structure of the scientific research on manufacturing and supply chain flexibility. We identified a sample of 153 internationally published papers and conducted a citation analysis to examine the connections between the many scientific papers and to explore the most influential works and their impact on flexibility research. Our analysis revealed that research on flexibility received the most scientific attention between 1996 and 2005. However, the majority of the currently valid types and dimensions of flexibility have been defined in the late 1980s and the early 1990s. The current paper provides the leading academic journals and papers in the field of flexibility research. Additionally, the results of our citation analysis indicate that flexibility research is significantly influenced by papers that have been presented at subject-specific conferences. Finally, our paper presents a clearly arranged structure of the most frequently cited papers dealing with manufacturing and supply chain flexibility. Furthermore, its contents and findings are briefly discussed to provide an overview of the previous academic research.     

Conceptualising complementarities in manufacturing flexibility: a comprehensive view

In this paper, we develop an extended view of the manufacturing flexibility construct. Instead of a sequential view as emphasised with the competence-capability perspective, the model presented in this study suggests a holistic view of manufacturing flexibility comprised of six complementary dimensions. We contend that the complementary view of manufacturing flexibility (MFLX) consisting of six dimensions – product-mix flexibility (PMX), routing flexibility (RTG), equipment flexibility (EQP), volume flexibility (VOL), labour flexibility (LBR), and supply management flexibility (SPM) – provides a path to implementation of manufacturing flexibility. Manufacturing flexibility is hypothesised as a second order construct comprised of the six complementary dimensions. We test our proposed model using data collected from US manufacturing organisations. Structural equation modelling was used to analyse the data. The results of confirmatory factor analysis support our hypothesis of a second order multi-dimensional construct structure. This comprehensive conceptualisation of manufacturing flexibility should help researchers evaluate the effect of manufacturing flexibility on operational and financial performance.     

The impact of sales and operations planning practices on manufacturing operational performance

There is a lack of rigorous empirical studies directly examining the impact of sales and operations planning (S&OP) practices on manufacturing operational performance. This paper aims to fill this gap by analysing a sample of 725 manufacturers from 34 countries. Hypotheses relate internal S&OP, integration with suppliers (IS) and integration with customers with manufacturing operational performance (delivery, quality and flexibility). The constructs were validated with structural equation modelling and the hypotheses were tested using multiple stepwise regression. Our findings showed a positive and moderate-to-large effect of internal S&OP on manufacturing performance, controlling for firm size, country economic development and market dynamics. There was no significant impact of supply chain integration on manufacturing performance. However, we found that IS positively moderated the relationship between internal S&OP and performance, suggesting that firms with mature IS amplify the effect of internal S&OP on performance. The study is among the first to empirically and rigorously establish the impacts of S&OP practices on manufacturing performance, using a large sample of manufacturers spanning different countries, markets and firm sizes. Results show that S&OP practices have a broad impact across several performance dimensions and are a powerful lever for generating manufacturing performance.     

Model for flexibility evaluation in manufacturing network strategic planning

In response to market pressures, manufacturers have adopted different approaches to provide flexibility regarding several aspects. In this paper, we suggest a model for the evaluation of the flexibility of the manufacturing supply chain, based on graph theory techniques. This model defines maximum excess demand that may be met using flexibility. Recourse to flexibility enablers is determined based on cost minimisation. Such enablers are volume flexibility, mix flexibility and safety stocks. The proposed model is solved using a two-step Mix Integer Linear Programme; the first step consists in defining maximum demand that may be met while the second step concerns minimising cost. The main benefit of our model is to deal with realistic problems in a rather short time. Therefore, it can be used in a wide ‘what-if’ design process. It means evaluating various contemplated flexibility configurations in multiple demand scenarios in order to choose the best option. It can be also used during operational supply chain planning in order to face to an unbalanced situation. This paper ends with a numerical example illustrating our model’s efficiency.     

Additive manufacturing management: a review and future research agenda

Based on the phenomenal changes that additive manufacturing (AM) has brought to industries and markets, managerial approaches should be re-examined and developed to take advantage of emerging opportunities. This revolutionary technology is dramatically changing business and innovation models, shrinking supply chains and altering the global economy. For example, 3D printing shifts production locations closer to customers and leads to free-form product design as well as sustainable manufacturing. Several studies have been conducted on AM technology, but the research stream on AM management is still developing, with studies dispersed in journals across different research areas. Our study presents both systematic and quantitative analyses of the literature, including co-citation analysis, factor analysis and multidimensional scaling, to explore the structure of the AM research domains in the scope of management, business and economics. We found eight main research streams: AM technology selection, supply chain, product design and production cost models, environmental aspects, strategic challenges, manufacturing systems, open-source innovation and business models and economics. Finally, based on the results of our in-depth analysis of the literature, we found nine promising future research directions.     

Aligning manufacturing flexibility with environmental uncertainty: Evidence from high-technology component manufacturers in Taiwan

While flexibility improvement is among the top concerns of manufacturing managers, managers are advised to choose the dimensions of flexibility they want in their plants. This study investigates the strategic choice of aligning flexibility development with the external environment that manufacturing managers face. Considering the nature of the high-technology industry in Taiwan, we measure environmental uncertainty based on the dimensions of customer demand, supply, competitors and product technology. Empirical data were collected from manufacturing firms in Taiwan. We then applied path analysis to examine the effect of aligning three types of flexibility: product mix, new product and volume with specific dimensions of environmental uncertainty. The results indicate that the matching of manufacturing flexibility with environmental uncertainty is necessary to ensure profit and sales performance. When faced with certain environmental stimuli, management should choose to emphasize and develop particular manufacturing flexibility.     

A method for comparing flexibility performance for the lifecycle of manufacturing systems under capacity planning constraints

The objective of this work is to describe a method for comparing the flexibility performance of manufacturing systems, in an uncertain environment, under lifecycle considerations and capacity planning constraints. The manufacturing systems costs are estimated over a time horizon and for a large variety of possible market scenarios. In order for the lifecycle cost values to be comparable among different systems, their values are calculated with the use of a special purpose algorithm. Statistical analysis of the estimated cost values is then employed for assessing the flexibility of each manufacturing system. The method is applied in an industrial case for checking, also from a flexibility point of view, the investment on a production system, using real life industrial data.     

New flexibility drivers for manufacturing,supply chain and service operations

Increasing product proliferation, customisation, competition and customer expectations, as well as supply side disruptions, pose significant challenges to firm operations. Such challenges require improved efficiency and resilience in manufacturing, service and supply chain systems. New and innovative flexibility concepts and models offer a prospective route to such operational improvements. Several emerging issues in flexibility, such as risk and uncertainty management, environmental sustainability, optimal strategies under competition, optimal operations with strategic consumer behaviours are being examined in this regard. This overview provides a concise review of these critical research issues, and discusses related papers featured in this special issue. Four major flexibility drivers are classified: disruption risks, resilience and the ripple effect in the supply chain; digitalisation, smart operations and e-supply chains; sustainability and closed-loop supply chains; and supplier integration and behavioural flexibility.     

The impact of collaborative transportation management on demand disruption of manufacturing supply chains

This paper describes the impact of collaborative transportation management (CTM) on the performance of manufacturing supply chains using a multi-agent approach. Two supply chain models (with and without CTM) are proposed to show how it realises the real operational interactions between different supply chain partners under demand disruption. Simulation results of the proposed models reveal the evolution of the CTM supply chain with demand disruption. The dynamic delivery ability and order point which are caused by demand disruption in the CTM supply chain are investigated. The results indicate that CTM can significantly reduce costs and improve the flexibility of companies in handling demand disruption problems. It is suggested that CTM is an efficient mechanism to manage supply chains, especially under a demand disruption environment.     

Flexibility measure analysis of supply chain

This paper is intended to explore a new method of measuring supply chain flexibility from two dimensions (resources and time) when the supply chain is coordinated. Under the assumptions that the node enterprises’ marginal costs increase with their outputs, firstly this paper analyses the coordination problem of a supply chain with buyback contract, then formulates the resource allocation with the entropy concept in the case of supply chain coordination, puts forward the concepts of resource output elasticity and time output elasticity, analyses the resources’ dynamic matching problem from the two dimensions of resource and time in order to respond to the change of market demand. Finally, based on the above discussion, this paper proposes a method of measuring supply chain flexibility by integrating the resource flexibility and time flexibility. The method not only considers the resources and time required to respond the market’s change, but also takes into account the coordination relationship between the node enterprises.     

Systemic criterion of sustainability in agile manufacturing

Agile manufacturing systems work in a constantly changing global market, particularly assembly systems at the last stage of product differentiation. Meanwhile, sustainability is becoming a key issue for manufacturing strategy. This paper formulates a systemic criterion of sustainability in agile manufacturing and computes it through flexibility and complexity. It is defined as a ratio of utility and entropy as a sustainability measurement. Under a unified framework, utility allows one to quantify the contributions to agility, in particular system flexibility. Complexity is measured by entropy. Thus, an original complementary role of flexibility and the complexity of the system are proposed. Developed from the distribution of system states, the systemic approach to sustainability in terms of output evolution is enriched. Based on a simple assembly line integer model simulation, a first quantitative analysis illustrates the concepts introduced.     

A CBFSA approach to resolve the distributed manufacturing process planning problem in a supply chain environment

In this competitive world cost and lead time reduction are of prime concern for manufacturing firms. To achieve this objective manufacturing entities are adopting several management philosophies such as Total Quality Management (TQM), just-in-time (JIT), and theory of constraints (TOC). The present paper addresses the advanced computer-aided process planning (ACAPP) problem in a distributed manufacturing supply chain environment and aims at cost and lead times reduction under several technological constraints. To deal with the complexity of the problem the constraint based fast simulated annealing (CBFSA) algorithm has been explored in this article. Extensive computations have been performed over the well-known benchmarks of advanced planning problems and the results obtained prove the superiority of the proposed algorithm over the prior approaches.     

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.     

Information processing-related infrastructural antecedents of manufacturing flexibility – a real options perspective

The relationship between manufacturing flexibility and environmental uncertainty has been widely studied; however, research involving manufacturing flexibility and associated infrastructural antecedents is sparse. In this paper, using the real options perspective, we develop a research model to explicate management support’s influence on an organisation’s manufacturing flexibility. We use a second-order, multi-dimensional construct and survey data collected from US manufacturers to test our hypotheses. The study provides evidence to suggest that management support through teamwork, information systems effectiveness, and integrated supply chain effectiveness enhances an organisation’s manufacturing flexibility.     

Towards theory building in manufacturing flexibility

This study consolidates and extends previous research to propose a theoretical framework of manufacturing flexibility. The framework proposes antecedent roles for manufacturing flexibilities in supporting a range of agility-related manufacturing priorities; suggests how such manufacturing flexibilities can be developed; and relates the effects of alignment between flexibility-facilitated manufacturing outcomes and business strategy on firm performance. A questionnaire was administered to 1700 senior level managers in manufacturing firms, with 322 valid surveys returned for data analysis. The results support the framework, and suggest that different manufacturing priorities can be facilitated through the development of specific manufacturing flexibilities. The results also indicate that these manufacturing flexibilities can be acquired through the development of purchasing competence in a firm. The data provide partial support for a relationship between congruity in manufacturing and business goals, and firm performance.