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Companies in high wage countries are increasingly confronted with the challenge of optimizing economies of scope and economies of scale simultaneously to succeed on a global market place. An integrated assessment of production systems facing this challenge is essential to evaluate the actual state of a company and to provide a basis for drawing the right conclusions to reconfigure production systems successfully.
In this paper an integrated model for measuring economies of scope as well as economies of scale is introduced, defining the fundamental domains of a production system. The major objectives resulting from the overall scale-scope dilemma are broken down for each domain and the main dimensions for an assessment of each domain are defined. A new measure named Degree of Efficiency is defined, quantifying the fulfillment of the opposing objectives in each domain and hence, the contribution to an overall resolution of the scale-scope dilemma.
The efficient dealing with the dynamic environment of production industries is one of the most challenging tasks of Supply Chain Management in high-wage countries. Relevant and current information are still not used sufficiently, to handle the influence of the dynamic environment on intra- and inter-company order processing adequately. Among other things, the problem is caused by missing or delayed feedback of relevant data. As a consequence of that, planning results differ from the actual situation of production. High Resolution Supply Chain Management describes an approach aiming on high information transparency in supply chains in combination with decentralized, self-optimizing control loops for Production Planning and Control. The final objective is to enable manufacturing companies to produce efficiently and to be able to react to order-variations at any time, requiring process structures to be most flexible.
Due to shorter product life cycles the number of production ramp-ups is increasing, while customers have a soaring demand for more variable and individualized products. In the future, optimizing the production ramp-up will become an important differentiation criterion for companies. Considering the whole supply chain in the ramp-up process becomes therefore indispensable. This is what the presented research in this paper concentrates on. The intention of the research project is to develop a model of a supply chain in the production ramp-up stage. Through this model, approaches for optimizing the production ramp-up in the whole supply chain will be derived.
Further the research project concentrates on measuring the production ramp-up performance in the supply chain, showing the impact on economic and financial measures. The result of this research is an approach to align the tasks and objectives of Supply Chain Management with the tasks and objectives of ramp-up management in order to optimize the whole supply chain in the ramp-up stage.
A company can choose between three generic competitive strategies. Alongside the strategy of cost leadership are the strategy of differentiation and the strategy of focussing on niches, although we will not be discussing this latter any further here. The strategy of cost leadership is based on the achievement of “economies of scale”, so generating advantage from the benefits of cost reduction, learning curve effects and automation. In the strategy of differentiation the focus is on “economies of scope” which enable the customer-specific products to be offered, but this is generally achieved only with an increase in the complexity of products and processes. In the past it was assumed that these two strategies were mutually exclusive, as an increase in the economies of scale basically leads to a reduction in the economies of scope, and vice versa. But in order to survive in the international competitive arena companies in the high-wage countries need increasingly to offer individually tailored products at competitive prices. The target to be aimed at is therefore customer-specific products at the cost of mass production, so resolving the dilemma between economies of scale and economies of scope. For this it is necessary to optimise the alignment of all the structural elements in both the product and its production, because of the high level of their interdependence.
The areas on which we will focus our review and designs in the following will be what are known as product-production systems, or more briefly, production systems. This topic includes not only the resources and processes of the value creation systems, but also the products produced and offered on the market by a company as one connected entity. In order to tackle the challenges mentioned above, it is necessary to make it possible to measure and compare the current position of any given production system on the see-saw between economies of scale and economies of scope, and then be able to redesign specific facets of them as a second phase. A method of integrative evaluation and design of production systems is presented below for this purpose.
Maximising economies of scale in individualised production is a vital issue for producing companies in high wage countries. A decisive enabler for this is the management of product and process complexity by systematic standardisation. Due to the strong and far-reaching impact of complexity on the value added chain, its management requires an integrative consideration of the entire product and production system.
The following paper introduces a methodology facing this challenge. The core element of this methodology is an integrative and complexity-focused assessment model. This assessment model has been validated experimentally by analysing key company data from more than 50 German toolmaking firms. Findings of this empirical investigation are presented in this paper.
Entgegen der von Porter postulierten Inkompatibilität von Economies of Scale und Economies of Scope sind in Hochlohnländern produzierende Unternehmen in zunehmendem Maße herausgefordert, sowohl individuelle Kundenbedürfnisse zu befriedigen als auch gegen den Kostendruck globalisierter Märkte zu bestehen. Diese Herausforderung entspricht einer Auflösung der Scale-Scope-Dichotomie. Aufgrund der hochgradigen Interdependenz der strukturbildenden Elemente eines Produkt-Produktionssystems müssen diese zur Auflösung der Dichotomie in ihrem spezifischen Standardisierungsgrad aufeinander abgestimmt werden.
Diese Abstimmung entspricht der Aufgabenstellung der integrativen Bewertungs-und Konfigurationslogik, die im Folgenden präsentiert wird. Auf Basis eines integrierten Bewertungsmodells, das Produkt-Produktionssysteme in vier quantifizierbare Spannungsfelder gliedert, kann hierbei der aktuelle Betriebspunkt eines Produktionssystems analysiert werden. Über die gewonnenen Analyseergebnisse ermöglicht dieses Bewertungsmodell die Steuerung des Konfigurationsprozesses eines Produkt-Produktionssystems in Form einer Konfigurationslogik.