Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems

For any manufacturing firm, theory suggests that the firm is better off if the manufacturing planning and control (MPC) system supports the market strategy as well as the manufacturing strategy. Typically, the strongest link between market requirements and manufacturing strategy concerns the process choice, i.e. choosing a manufacturing process that supports a firm's competitive priorities. The general aim of this paper is to examine the role of the MPC system in a manufacturing strategy. More specifically, the purpose is to link market requirements, product characteristics, and the process choice to the MPC system. A special focus will be placed on the link between the process choice and the design of the MPC system. Two key factors are identified as major processspecific elements influencing the MPC system design: the number of planning points, and set-up times at individual resources. The process choice affects the lower planning levels of the MPC systems, where the physical reality of the plant becomes apparent. This is especially true for production activity control, but also for requirements planning (material and capacity). Concerning the MPC system design for longer-term planning, such as sales and operations planning and master scheduling, the impact from market requirements and product characteristics dominates.     

Assessing intermediate infrastructural manufacturing decisions that affect a firm's market performance

The purpose of this study is to develop a strategic operations management model that links intermediate infrastructural operations decisions and market performance given process choice as a structural constraint for manufacturing firms. The results underscore the effects of manufacturing control and staff skill and knowledge development on a firm's market performance. Several conclusions are drawn. First, manufacturing control, and staff skill and knowledge development has played significant roles in determining market performance. Second, either alone or in tandem with other independent variables, technology application dose not appear to be the most critical factor to affect a firm's market performance in today's Chinese business environment. Third, process type may not have a direct impact on market 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.     

Improving manufacturing lead time using holistic approach to planning and execution with integrated data structures: numerical simulation and comparison

Manufacturing planning and control (MPC) plays a significant role in effective planning of requirements and execution of those plans. It also influences various performance measures, in particular on-time delivery, which is dependent on many factors including manufacturing lead time. This paper aims to address key issues of infinite loading of resources, lack of forward planning, and limited simultaneous planning capabilities of MRP through a holistic approach to planning of various components and execution of those plans, based on integrated data structures. It is shown that integrated data structures, combining hierarchical single-level BOMs and sequential operations routings using a holistic approach to planning and execution enable reducing lead time by eliminating slack times associated with traditional methods. Furthermore, manufacturing lead time, based on integrated data structures is a true representation of operation times and is shorter compared with traditional lead time. Sensitivity analysis on lead-time with bills-of-materials (BOM) levels and floats shows that the holistic approach to planning and execution with integrated data structures is an effective way of improving lead-time, in particular when product structures involve many levels of BOMs and floats (slack times). The proposed holistic approach provides forward planning, simultaneous planning of components, and finite loading of resources. It is expected that the concept of integrated data structures be extended to model transaction data with process functions (e.g. production order cycle), which would improve overall cycle times by eliminating manual functions associated with current methods.     

The impact of market focus on operations practices

A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm's competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance.     

Strategic purchasing participation,supplier selection,supplier evaluation and purchasing performance

In this article, we examine how purchasing’s strategic participation influences supply management activities via the choice of appropriate operational and strategic criteria. Specifically, the study focuses on supplier selection and monitoring ongoing supplier performance evaluation based on operational and strategic criteria. A combination of choosing appropriate supplier selection criteria and monitoring supplier performance ensures that the benefits of purchasing’s participation in strategic planning translate into better purchasing performance of cost, quality, delivery, flexibility and innovation. We test the hypotheses using survey data collected from manufacturing companies in the US by means of a path model. Our results provide support for the tenet that purchasing’s participation in strategic planning influences purchasing performance directly as well as through the mediating effects of supplier selection criteria and supplier performance evaluation. We discuss the theoretical and managerial implications of the findings and propose directions for further research.     

An adaptive framework for aligning (re)planning decisions on supply chain strategy,design, tactics,and operations

Over the last decade, a wealth of valuable approaches to supply chain strategic, tactical, and operational planning has been extensively developed. However, conventionally the planning decisions at each of these levels have been considered in isolation from the other levels. Moreover, decisions on supply chain strategy, design, tactics, and operations are interlinked and dispersed over different supply chain structures (functional, organisational, informational, financial, etc.). This study develops a framework to increase the efficiency, consistency, implacability, and sustainability of decisions on how to design, plan, and run supply chains. In this paper it is proposed that comprehensive planning as an adaptive process encapsulates the planning decisions to be interrelated at all the decision-making levels. A conceptual model is described interlinking the supply chain strategy, design, planning, and operations on adaptation principles. Subsequently, a mathematical modelling complex and its realisation in a software environment is presented. This study contributes to developing methodical basics and practical tools to transit from simple open time slots incremental planning to dynamic, feedback-based adaptive supply chain planning. The elaborated framework serves to increase the efficiency, consistency, implacability, and sustainability of decisions on supply chain strategy, design, tactics, and operations. Decisions alignment can help to increase the wealth of organisations by producing demand-corresponding products in the most cost-effective manner through increasing agility, responsiveness, reaction speed to market changes, and continuous comprehensive improvements/adaptation of supply chains.     

Assessing the effects of manufacturing infrastructure preparation prior to enterprise information-systems implementation

Reports on the success or failure of enterprise information system (EIS) implementation have been decidedly mixed. In this study, we focus on manufacturing infrastructure preparation prior to EIS implementation and report the results of a survey of 152 US manufacturing companies that have implemented EIS. We have provided four major findings in this study: (1) the requirements from customers and trading partners are more powerful drivers motivating US manufacturing firms to implementing enterprise systems than internal business planning needs; (2) one manufacturing infrastructural issue often has implications for other infrastructural items in implementing technology, so various manufacturing infrastructural issues should be prepared simultaneously; (3) manufacturing infrastructure preparation prior to EIS implementation has significant positive effects on customer-focused performance, production/operations performance, and financial performance; and (4) better customer-focused performance contributes to better financial performance.     

A methodology for monitoring system performance

Monitoring and improving manufacturing processes involves identifying, investigating and eliminating problems responsible for inefficiencies in production operations. While statistical process control tools, such as control charts, are available for process monitoring at the operational level, methods for evaluating system performance from more strategic and tactical levels are limited. The traditional control charts that monitor a single process parameter at a time may not be appropriate in situations where interrelationships among various system measures exist. Although multivariate process control techniques allow for simultaneous monitoring of several process parameters, they require assumptions of independence and multivariate normality of data. In addition, their application has mostly been at an operational level. In order to assist managers in monitoring and improving manufacturing system performance, this paper proposes an individual control chart that monitors an integrated performance index generated from a non-parametric method, which effectively considers multiple performance measures and the relationships between them. The primary advantages of this method are that a single integrated measure can be monitored, does not require assumptions of independence and multivariate normality of data, and allows for the integration of decision-maker's input when the system measures that are monitored have unequal importance.     

A function block based approach for increasing adaptability of assembly planning and control

Today's market turbulences cause frequent changes in manufacturing environments. Products diversity, small batch sizes and short life cycles have increased production uncertainties and created a highly dynamic shop floor environment. One essential requirement of such an environment is an adaptive planning and control system that is sufficiently agile to respond to the variety of production requirements and enable easy system reconfiguration at run-time. When developing a product, assembly is a key area that impacts the manufacturing system's responsiveness to the changes. In this research, a framework and a new methodology are introduced to increase the adaptability and autonomy of job-shop assembly process planning and control using function blocks (FBs). A function block is a reusable functional module with an explicit event-driven model, and provides for data flow and finite state automata based control. Event-driven and FB-enabled decision-making is unique in adaptive assembly planning and control. It is explained through an example of a two-robot assembly work cell, where the result of the adaptive planning is wrapped in FBs for execution. The proposed approach has been implemented and simulated using Matlab Simulink in the case study. The simulation demonstrates how this approach would increase the adaptability and responsiveness to changes that may occur regularly in dynamic job-shop assembly operations.     

客户导向与竞争导向影响运营绩效作用机理研究：基于模块化视角

为了揭示生产实践在市场导向影响运营绩效中的作用,基于模块化视角研究客户导向与竞争导向影响运营绩效作用机理。204份有效样本的实证研究结果表明,客户导向与竞争导向均显著正向影响产品模块化（β=0-21/0-20）,但是对流程模块化均无显著影响;产品模块化显著正向影响流程模块化（β=046）;产品模块化对运营绩效并无显著影响,但是流程模块化显著正向影响运营绩效（β=0-29）;控制变量企业规模和运营年限对运营绩效均未表现出显著作用。结果表明,模块化可以作为企业实施市场导向战略时的一种有效生产实践用于提高运营绩效,但是产品模块化和流程模块化的影响机制存在着差异。     

Prediction of manufacturing resource requirements from customer demands in mass-customisation production

Mass-customisation production is a new manufacturing approach to produce customised products based on requirements of individual customers while maintaining the quality and efficiency of mass production. Due to the large variations of customised products, the traditional methods for planning manufacturing resources based on volumes of mass produced products are not effective for mass-customization production. In this research, a new manufacturing resource planning method is developed by studying the relations between customer demands and manufacturing resource requirements based on the true data from a mass-customisation production company—Gienow Windows and Doors. In this research, first the relations between the customer demands, modeled by sales data at levels of whole company, sales branches, and markets in sales branches, and the manufacturing resource requirements, modeled by labour requirements of different production lines are studied. Fuzzy pattern clustering method is employed for classifying the resource requirements into patterns to further understand the relations. Based on this study, linear regression and neural network are used to model the linear and non-linear relations between customer demands and manufacturing resource requirements, and to predict the manufacturing resource requirements from available customer demands. A manufacturing resource planning system was developed to demonstrate the effectiveness of this introduced approach.     

信息系统协同、信息共享对运营绩效的作用机理

构建了制造商与供应商之间信息系统协同、信息共享对企业运营绩效作用机理的理论模型.以广东省珠三角地区272家制造企业为调查对象,利用结构方程模型对制造商与供应商间的信息系统协同对信息共享与企业运营绩效作用机理进行实证研究.研究结果发现制造商与供应商间的信息系统协同对企业运营绩效的直接影响并不显著,但可以以信息共享为中介而...     

Exploring the importance of collaborative assets to hospital-supplier integration in healthcare supply chains

Research has established the dominant influence of collaboration and integration in manufacturing supply chains. However, the role of these characteristics in healthcare supply chain operations and performance has not yet been investigated. The current research proposes three assets under collaboration as dominant enablers of hospital-supplier integration: collaborative planning, collaborative execution and collaborative decision-making. Considering the advances in technology in healthcare, we propose that technology orientation moderates the above linkages. Survey-based responses were collected from hospitals, chemistry and pharmaceuticals, and medical equipment and surgical suppliers that are key entities in healthcare supply chains. In total, 239 completed responses were collected and analysed using structural equation modelling. The findings suggest all three as dominant enablers of hospital-supplier integration. Furthermore, technology orientation was found to positively moderate the impact of planning and execution on hospital-supplier integration. This orientation also suggested that hospital-supplier integration results in positive operational performance.     

Effectiveness of planning and control systems: An empirical study of US and Japanese firms

Both researchers and practitioners have investigated the effectiveness of manufacturing planning and control systems (MPCS) in an attempt to justify the investment in MPCS. This study uses the Wight's (1981) detailed questionnaire to measure the degree of planning and control implementation in a manufacturing system, which is referred to as MPCS rating. The MPCS rating is then used to study the relationship between the self-assessed manufacturing competitiveness (cost, quality, delivery and flexibility) and the objective performance measures of manufacturing performance such as production cost, productivity change, customer reject percent, manufacturing lead time, etc. The results show that there is a strong relationship between MPCS ratings and objective performance measures as well as self-assessed competitiveness in both Japanese and US firms. The results are important since they indicate that fundamental manufacturing planning and control procedures improve a firm's performance on both its internal operations as well as external competitiveness goals.     

The implementation of an activity-based costing collaborative planning system for semiconductor backend production

While the market turns to an environment with low profit margins for semiconductor backend operations, it is hard for an independent firm to survive today. Forming strategic alliances or integrating an enterprise's internal firms by means of collaborative planning/operations to gain competitive advantage is inevitable. This paper presents the development of an activity-based costing collaborative production planning system (ABC/CPPS) to help production planners to estimate the manufacturing profit of semiconductor backend turnkey (combined IC assembly and testing) operational services at the early stage of order release to production line in a collaborative context. The estimation is under the real constraints of production resources. A predicate/transition net (Pr/Tr net) is used to simulate and implement the activity-based costing (ABC) model with the dynamic characteristics of a production line incorporated. A financial measure, profit, is used to supplement and indicate the consequence of the planning result and link the view to the enterprise's financial vision.     

Towards intelligent manufacturing planning and control systems

In this paper, we review some well-known manufacturing planning and control (MPC) systems and models, and highlight both their advantages and major drawbacks. The analysis indicates that various important planning and control problems, as they arise in industry, are not properly addressed by current MPC systems. A well-known production system typology, illustrated by industrial examples, is briefly discussed to further highlight these planning and control problems. Next, we define a basic framework architecture for planning and control in both make-to-stock and make-to-order systems. The emphasis in this framework is on an integration of technological and logistics planning, and on an integration of capacity planning and materials coordination issues. In addition to this architecture, we further define an algorithmic framework that explicitly aims at the latter integration. To complete the architecture, we suggest a variety of procedures and algorithms to implement in the various modules.     

运筹学在工业工程中的应用

调查研究了运筹学模型及其方法在工业工程的应用情况。针对工程制造与控制系统中的存在的实际问题,研究了解决这些问题的特定运筹学的方法。文中还就运筹学方法今后的应用发展力作了探讨。     

Optimizing OEE,productivity and production cost for improving sales volume in an automobile industry through TPM: a case study

The aim of this paper is to investigate how increase in sales volume has evolved by improving overall equipment effectiveness (OEE) of machines, plant productivity and production cost through total productive maintenance (TPM) initiatives in a reputed tractors manufacturing industry in India. In the present scenario of global competitive market, the manufacturing industry needs to improve their operational performance for surviving and prospering. TPM is practised by industry as a business tool for rapid and continuous improvement in its manufacturing capabilities. OEE offers a powerful control tool to overcome production deficiencies and operational performance constrains. Productivity and manufacturing cost are also crucial operational measures to analyse the manufacturing performance. In this study, evaluation and analysis of the methodology adopted for improving sales volume through TPM initiatives was carried out using an interactive research approach. The industrial example on the application of OEE tool demonstrates that it has a remarkable potential to enhance the equipment effectiveness. The empirical findings of the study reveal that augmented OEE and productivity, and reduced production cost resulted to double the sales revenue and triple the profit within a period of three years. The industry also achieved notably tangible and intangible benefits with the TPM implementation.     

Combining MPC and integer operators for capacity adjustment in job-shop systems with RMTs

With today's worldwide competition, manufacturing companies are faced with challenges to respond to volatile market demands quickly and flexibly while maintaining a cost-effective level of production. Capacity adjustment is one of the major approaches to cope with such uncertain fluctuations, balance capacity and load and improve the effectiveness of manufacturing control. Instead of flexible staffs, working time and outsourcing, in this paper, we consider a machinery-based capacity adjustment via Reconfigurable Machine Tools (RMTs) to compensate for unpredictable events. To include these tools effectively on the operational and tactical layer, we propose a complementing feedback approach using model predictive control (MPC) to identify the potential of RMTs for a better compliance with logistics objectives and a sustainable demand oriented capacity allocation. To this end, we formulate a reconfiguration rule for the determination of the triggered RMTs and propose three strategies for resolving the integer assignment of RMTs: floor operator, genetic algorithm as well as branch and bound. Utilising simulation, we demonstrate the effectiveness of the proposed method for a four-workstation job-shop system.