Implementing of a three-phase integrated decision support model for parts machining outsourcing

Parts machining outsourcing (PMO) can be regarded as a strategic weapon to increase product quality and productivity as well as cost cutting in many manufacturing enterprises. However, making an outsourcing decision based on accumulated experience is neither effective nor scientific due to subjective judgement and lack of systematic analysis. Therefore, to systematically help the decision-maker survey and select suppliers to outsource and also to timely achieve the most beneficial portfolio among suppliers in a non-cooperative game structure, this paper proposes an integrated decision support model for PMO using ontology, constraint-based reasoning, fuzzy VIKOR and game theory in three phases, namely supplier prequalification, ultimate selection and order coordination. In the decision-making process, decision factors such as quality, cost and production capability are categorised and put into different phases, respectively, by their characteristics for being measured at a more reasonable method. Finally, a case from a leading printing machinery enterprise is analysed to validate the proposed model. This research is expected to improve the quality and effectiveness of decision-making in PMO.     

Fuzzy multiple-goal programming for analysing outsourcing cost-effectiveness in hi-tech manufacturing

Given high-tech industry trends such as limited production, diverse model range, short product life cycle, and high customer responsiveness, issues related to recognitive core vs. non-core operations in internal vs. external environments are crucial in hi-tech production systems planning. This work elucidates the relationship between capacity planning and suppliers with a focus on quantity allocation, manufacturing quantity, capacity limit, warehouse space, and time period for hi-tech production planning. A fuzzy multiple-goal programming approach is adopted to model total cost, holding cost, and rework cost in order to analyse the relative cost-effectiveness of different factors. The proposed model was examined via the fuzzy analysis of its application to an actual building-integrated photovoltaic (BIPV) manufacturer with variable characteristics. The proposed model of cost-effectiveness accommodates variables such as multiple components, quality, and responsiveness, it integrates multi-stage functions, and a specific implementation is demonstrated. Various scenarios are designed to analyse the transaction options for outsourcing under combined schemes. The analytical results in this study can help decision makers to systematically analyse the cost effectiveness of outsourcing during capacity planning in practical applications.     

Supplier selection for outsourcing from the perspective of protecting crucial product knowledge

This paper considers the supplier selection problem in terms of the characteristics of the products/processes to be outsourced. Emphasis is placed on the possible risk that may arise in sharing or transferring crucial product/process knowledge to suppliers during outsourcing. Two indices are employed to assess the suitability of a supplier for outsourcing a product/process. The first measures the supplier's capability for technological innovation in the products for which they offer outsourcing services, and includes investment in R&D projects and the ratio of R&D personnel to the total work force. The second index measures the supplier's practices in protecting its clients’ intellectual property rights, and includes corporate image, track record in protecting clients’ intellectual property rights, and compliance with internal and external requirements. These two indices are then used to classify suppliers into four major groups, which are in turn assigned to classes of components/processes depending on their strategic importance and vulnerability – a portfolio approach. The proposed portfolio approach has been validated via a substantial empirical study involving data for 401 parts, 216 suppliers, and 36 manufacturing companies operating in China.     

Modelling joint outsourcing and offshoring decisions

Offshoring and outsourcing have emerged as two most essential and important strategies for the manufacturing firms globally. This has happened due to the relentless forces of competition and globalisation, which has forced modern manufacturing firms to disaggregate themselves and reach for foreign investments, technological inputs through collaboration and cooperation among markets and partners. Outsourcing and offshoring simultaneously has potential to help the firm to meet three strategic goals i.e. ‘efficiency’ through cost minimisation; ‘exploration’ through an access to the right and technologically capable firm vendors/ Suppliers/ players; and ‘exploitation’ from development of global markets. Both outsourcing and offshoring have grown to a great extent either by the number of companies involved or by the number of multiple nations are involved. Hence, addressing both offshoring and outsourcing strategies together can provides value to the supply chain in economical and efficient way. Therefore, this paper is an attempt to model joint outsourcing and offshoring decision integrated with fuzzy-MCDM approaches using fuzzy data to optimise total cost through right selection of suppliers to meet demand of global markets, thus, achieving efficiency, exploration and exploitation. The model addresses qualitative and quantitative criteria in joint decisions and is also illustrated to show the cost effectiveness.     

Production scheduling with outsourcing scenarios: a mixed integer programming and efficient solution procedure

When market demand exceeds the company's capacity to manufacture, outsourcing is commonly considered as an effective alternative option. In traditional scheduling problems, processing of received orders is just possible via in-house resources, while in practice, outsourcing is frequently found in various manufacturing industries, especially in electronics, motor and printing companies. This paper deals with the scheduling problem, minimising the cost of outsourcing and a scheduling measure represented by weighted mean flow time, in which outsourcing of manufacturing operations is allowed through subcontracts. Each order can be either scheduled for in-house production or outsourced to an outside supplier in order to meet customer due dates. In this problem, not only should the sequence of orders be determined, but also decision on picking the jobs for outsourcing, selecting the appropriate subcontractor, and scheduling of the outsourced orders are considered as new variables. To formulate the given problem, four different outsourcing scenarios are derived and mixed integer programming models are developed for each one separately. Furthermore, to solve the suggested problem, a computationally effective team process algorithm is devised and then a constraint handling technique is embedded into the main algorithm in order to ensure satisfaction of customer due dates. Numerical results show that the suggested approach possesses high global solution rates as well as fast convergence.     

A structured approach to explore technological competencies through R&D portfolio of photovoltaic companies by patent statistics

When the technological development of an enterprise is path dependent, core technological competencies will develop. In addition, core technological competencies promote technological development. Consequently, enterprises should always examine the advantages of their core technological competencies. Under dynamic competition, enterprises should monitor their own performance as well as their competitors at all times and consequently adjust their technological strategies. This study used two patent indices, Patent Share and Revealed Technological Advantage, to measure the internal core technological competencies of manufacturers. It also integrated four other indices namely: (1) Technology Attractiveness (Relative Growth Rate), (2) growth potential of technologies (Relative Development of Technology Growth Rate), (3) Relative Patent Position, and (4) Revealed Patent Advantages. These were used to analyze the external strengths and weaknesses of the research and development (R&D) portfolios of companies. These two analytical methods can effectively identify the internal core technological competencies and the external advantages of R&D portfolios of leading companies in the solar photovoltaic (PV) industry. This study also discussed the relationship between R&D portfolios and core technological competencies of leading solar photovoltaic companies and compared those with two core technological competencies with those that have a single core technological competence. The study results show that the R&D portfolios of companies engaged in a single, specific technology field have advantages. This study helps improve the quality of technological planning and decision-making of manufacturers, proposes a method of using core technological competencies to analyze the advantages of R&D portfolios, and helps solar PV manufacturers monitor their own core technological competencies as well as their competitors and partner companies.     

基于Petri网的管理人员素质变化过程定性模拟

将QSIM定性模拟方法与Petri网集成用于描述管理人员素质变化过程,采用概率统计的方法处理模拟结果以提高管理人员任职资格确定的准确程度.将企业管理者的素质划分为成就动机、领导能力、人际关系能力、专业职务能力四类,设计了企业管理人员素质变化过程的PETRI网模型,规定了变量知识的表示方法和网络变迁推理规则;设计了基于素质改变成本的网络知识状态转移过滤规则,以防止定性模拟过程中的组合爆炸;设计了管理人员素质确定的概率统计处理方法,并给出了一个应用示例说明其应用过程.     

知识经济时代企业管理系统优化要素分析

随着知识经济时代的到来，知识，技术，信息，决策以及有知识的员工为主体的人才要素等，必将成为企业管理系统优化的主要要素。     

What Drives (or Hampers) Outsourcing? Evidence for a Local Production System in Emilia Romagna

The paper investigates the drivers of the outsourcing decisions of firms located in a specific local production system. Different kinds of drivers are considered drawing on different strands of the literature, considering the firm from an organizational point of view, and as a production, industrial and innovation unit of analysis. Theoretical correlations between outsourcing decisions and variables are formulated and tested with respect to a representative cross-section sample of the firms in Reggio Emilia, a local production system in Emilia Romagna. The main result of the paper is that, in the local context investigated, transaction costs do not seem to be a significant driver of outsourcing. The decision to externalize is rather driven by other arguments, strongly based on the resource–competence approach, factors such as the need for tapping into the providers to promote technological innovation. On the other hand, these drivers are contrasted by the industrial relations of the firms, as workers and workers' representatives significantly hamper it, possibly fearing job losses, or at most expect to be involved in the relative decision in order to make it possible or even spur it. These results have important implications, both at the research level—at which they suggest to complement the transaction cost analysis of outsourcing with that of other approaches—and at the management level—at which they support the thesis that external organizational innovations, such as outsourcing, cannot neglect internal organizational aspects, such as human resource management and industrial relations.     

Outsourcing practices in automotive supply networks: an exploratory study of full service vehicle suppliers

Most automotive companies outsource the design, manufacturing and assembly of some complete cars to independent suppliers or full service vehicle companies (FSVs). FSVs represent a relatively unexplored form of outsourcing which combines joint efforts in developing a modular product with the externalisation of specific niche manufacturing processes. On the basis of comparative cases and of qualitative information collected within three FSVs and three OEMs, this study aims to investigate the associated advantages and risks for FSVs, commonalities/differences from the practices of outsourcing to component/module specialists that can be found in other industries and why and for what kind of products FSVs can be appropriate in automotive supply networks. The study contributes to the debate on outsourcing in the automotive industry by providing an original interpretation on why FSVs have recently seen a shakeout with some growing whilst others have faltered.     

Development of a real-time multi-objective scheduler for a semiconductor fabrication system

Semiconductor wafer fabrication involves possibly one of the most complex manufacturing processes ever used. This causes a number of decision problems. A successful system control strategy would assign appropriate decision rules for decision variables. Therefore, the goal of this study is to develop a scheduler for the selection of decision rules for decision variables in order to obtain the desired performance measures given by a user at the end of a certain production interval. In this proposed methodology, a system control strategy based on a simulation technique and a competitive neural network is suggested. A simulation experiment was conducted to collect the data containing the relationship between the change of decision rule set and current system status and the performance measures in the dynamic nature of semiconductor manufacturing fabrication. Then, a competitive neural network was applied to obtain the scheduling knowledge from the collected data. The results of the study indicate that applying this methodology to obtaining a control strategy is an effective method considering the complexity of semiconductor wafer fabrication systems.     

Prescribing the Content and Timing of Product Upgrades

Demand for a family of high-technology products such as notebook computers erodes over time as competitors introduce new products that incorporate improved technologies. A manufacturer may compensate for this by applying the model formulated in this paper to prescribe the content and timing of upgrades to maximize total profit over the life cycle of the product family. The model deals with economies of scale that might be achieved by the upgrading process. It provides decision support by integrating decisions of relevant organizations in the enterprise: marketing (e.g., marketing strategy, pricing), product design engineering, process design engineering, and supply chain management (e.g., suppliers, production, outsourcing, inventory, backorders, and distribution). The paper presents a branch-and-price solution approach that employs an effective, new method for solving associated subproblems. Computations evaluate the efficacy of the solution approach and examples demonstrate contexts in which managers might apply the model to advantage.     

Fuzzy-based sustainable manufacturing assessment model for SMEs

Now-a-days, in the manufacturing, sustainability has become a necessity partly due to the threats created by traditional manufacturing practices, and due to regulations imposed by stakeholders. Sustainable manufacturing implies the creation of products that utilize minimum resources, has minimum negative impacts on environment and are safe for society at large at an affordable cost. This study proposes a fuzzy inference system-based model for the evaluation of manufacturing sustainability of small and medium enterprises (SMEs). In order to assess the manufacturing SMEs, decision makers’ opinion of the importance of sustainability measures and indicators and also the performance of enterprise with respect to indicators are gathered using linguistic variables. An illustrative list of sustainability indicators for manufacturing SMEs is identified considering the characteristics of SMEs. The implementation of our model for a manufacturing SME identified weak areas of performance which require appropriate strategy to enhance the overall sustainability. Based on the output of this assessment model and further deliberations with decision makers, case company is in process of selecting an appropriate strategy to reduce the environmental impacts. This model serves as a tool to assists the decision makers in assessing various dimensions of sustainability within their manufacturing SMEs.     

What makes outsourcing effective? A transaction-cost economics analysis

This study extends the discussion of Transaction Cost Economics (TCE) and outsourcing to the selection of governance mechanisms for an effective outsourcing transaction. Specifically, our objective is to provide a better understanding as to how firms follow up on their outsourcing decisions to enhance manufacturing competitiveness through the governance mechanism, such as contract and relational adaptation (buyer-supplier cooperation). A TCE-based outsourcing model is developed to depict the relationships among key TCE variables, transaction attributes, governance mechanisms, and manufacturing competitiveness. Based on the data collected from 969 manufacturing plants in 17 countries, we found significant mediated effects from contractual clauses and relational adaptation. Firms in our sample rely on either or both types of governance mechanisms to safeguard uncertainties and opportunism inherent in outsourcing, which enhances manufacturing competitiveness. The important managerial and research implication is that, for making an outsourcing decision, it is insufficient to merely examine the transaction attributes without recognising how various forms of governance mechanisms can be implemented to enhance outsourcing effectiveness.     

Collaborative adoption of blockchain technology: A supply chain contract perspective

The outbreak of COVID-19 has significantly affected the development of enterprises. In the post-pandemic era, blockchain technology has become one of the important technologies to help enterprises quickly gain market competitiveness. The heavy investment required of supply chain stakeholders to employ blockchain technology has hindered its adoption and application. To tackle this issue, this study aims to facilitate the adoption of blockchain technology in a supply chain consisting of a core enterprise and a small/medium-sized enterprise through an effective supply chain contract. We analyze the performance of a cost-sharing (CS) contract and a revenue-sharing (RS) contract and propose a new hybrid CS-RS contract for better performance. We conduct comparative analyses of the three contracts and find that the hybrid CS-RS contract can more effectively incentivize both parties to reach the highest level of blockchain technology adoption and achieve supply chain coordination.     

Decision model for partnership development in virtual enterprises

A virtual enterprise has been considered as a temporary consortium of companies. Recently, researchers have investigated virtual enterprises from various perspectives, such as business activities and workflows, information exchanges and their standards, organizational behaviours between companies, etc. However, real collaborative activities among companies in a virtual enterprise cannot be done before a partnership is developed among companies. Besides, though partnership is important in virtual enterprises, a decision model for partnership development is seldom studied. This research develops a decision model from a micro view (i.e. from a company's perspective). A company may use the model to specify its current partnership strategy and determine its future partnership strategy with another company. Four factors are considered in the model: the format of the relationship with suppliers, the number of suppliers, the type of service provided by suppliers and the method of service delivery from suppliers. However, a partnership strategy has to be updated based on internal and external changes. This research finds out that six factors are associated with a change on partnership. With those factors, a decision process is developed for a company to update its partnership strategy. The partnership of IBM to Acer is also investigated to illustrate the application of the model. The results validate the applicability of the decision model.     

基于FMEA的军队第三方物流供应商选择

目的 针对军队第三方物流供应商的选择问题,从风险视角对供应商完成军事保障任务过程中可能存在的风险进行识别和评估,以降低军事物流外包风险,为军队第三方物流供应商决策提供方法和思路。方法 提出可将FMEA技术运用于军队第三方供应商选择中的操作性框架,按照框架流程确定评价标准、识别潜在失效模式、决策分析,可更加全面、科学地对军队第三方供应商做出选择。结果 在不考虑风险的情况下,5家候选供应商中E的原始评分最高,D排名居中,但经过FMEA分析后,由于E在单项评价指标上的风险比例太大,而D的各项指标风险比原始排名靠前的供应商小很多,因此D成为军队最终选择的供应商。结论 利用FMEA分析军队第三方物流供应商选择问题,可以起到事先识别可能出现的失效模式,分析产生原因和可能导致的后果以及现有措施的可控程度,从而评估每位候选供应商在确定的评价标准中的风险大小,最后综合原始评分得出了供应商选择的结果。该方法操作简单、计算方便,能比较全面衡量军队第三方物流供应商的综合水平,有助于提高军队物资保障效率,降低物资保障风险。     

Modelling of outsourcing decisions in global supply chains. An empirical study on supplier management performance with different outsourcing strategies

Outsourcing decisions in global supply chains are critical to a business’ competitiveness. This study investigates and compares the supplier management in Taiwanese enterprises under different outsourcing strategies. Base on an empirical study through questionnaires, we investigate the supplier management and critical success factors of the Taiwanese enterprises. It is shown that different outsourcing strategies should be deployed by different types of industries, and a good working relationship with suppliers and customers are paramount to success. The important issues related to supplier management include supplier capability to deliver on time, long term contract strategy with suppliers, supplier evaluation, and quality of material from suppliers.     

基于合作博弈和数据包络分析的联合库存成本分摊

第三方物流集成供应是降低供应链成本的有效途径,而集成供应要解决的一个关键问题是联合库存成本在各供应商之间的分摊。针对多供应商集成供应问题,提出了一种基于合作博弈和数据包络分析的联合成本分摊方法,得出合理的联合库存成本分摊比例。该方法充分考虑了联合库存各参与企业投入产出的贡献,对各参与方来说公平合理。算例证明该方法具有较高的可操作性和合理性。     

基于电子商务的大规模定制

提出了基于电子商务的大规模定制模式,指出该模式是以定制企业为核心,通过电子商务平台将定制企业、供应商、客户及第三方物流公司等密切联系起来。阐述了该模式的运作过程并对其核心部分进行了分析,论述了该模式的优势。最后,通过几个成功的案例说明该模式的效果。