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Digital networking via the company and as well, the overall supply chain, can only succeed if digital planning reflects reality as accurately as possible and if production control can react to deviations in real time. In essence, this leads to a development of process control towards process regulation. While longterm production and resource planning is usually mapped by Enterprise Resource Planning (ERP) systems, detailed planning, including short-term deviations and real-time data at the production level, is increasingly supported by Manufacturing Execution Systems (MES) at the production control level. However, in order to bring the underlying system concepts into line with Industry 4.0 efforts in a standardized manner, mutual functional integration within the framework of interoperable production planning and control is of crucial importance. For this purpose, studies were carried out in particular into cause-effect relationships. Thus, the overarching research objective is a valid design model to increase the controllability of production planning and control systems (PPC) in the context of Industry 4.0.
Subscription business transforms traditional business models of machinery and plant engineering. Many manufacturing companies struggle to pull out the potential created by Industry 4.0 and make it economically usable. In addition to technological innovations, it is necessary to transform the business model. This leads to a shift from ownership-based and product-centric business models to outcome-based business models, which focus on the customer's value and thus realize a unique value proposition and competitive advantage – the outcome economy. Based on a case study analysis among manufacturing companies, this paper provides further clarification including a definition and constituent characteristics of subscription business models in machinery and plant engineering.
The growth of installed wind capacities generated a market with a huge variety of service offers for operation & maintenance of wind turbines. Different parties like manufacturers, component suppliers as well as independent service providers compete for the attractive after sales market. An innovative service offer which seems to meet the customers’ requirements is the guarantee of availability for wind turbines. However, these service providers are facing new challenges regarding their performance potentials and their financial risks occurring from possible penalties. Service providers have to reconsider their preparedness of performance, their new occurring financials risks, their cooperation and qualification level as well as their localization of service bases. To be able to quantify these new challenges and risks a simulation model has been designed in the context of a German research project named “WinServ”.
Industrial Service Providers (ISP) are exposed to constantly raising competitive pressures regarding both cost and performance aspects. The massive challenges caused by the current worldwide financial and economic crisis even intensified the need for process optimizations aimed at increasing the productivity of service production. To reach this goal the evaluation and elimination of waste in their production processes becomes a crucial ability for ISPs. This paper proposes a new approach for increasing productivity in service production processes using a generic measurement model for the detection and evaluation of waste. The model is based on established lean management principles, but tailored to the specifics of ISPs by adopting a customers’ perspective to track down and eliminate waste. The evaluation builds on an in-depth-analysis of particular types of waste in the industrial service production processes. Viewed from the customers’ perspective and taking into account the specific characteristics of services (e.g. intangibility, heterogeneity, inseparability, and perishability) and service production (e.g. volatile demand, a tendency to over-capacity, and limits to planning) the approach employs a service blueprint reference model to then determine the different types of waste in the various parts of the service production process.
Companies are transforming from transactional sales to providing solutions for their customers. Mostly, smart products, enabling companies to enhance their products by providing smart services to their customers, are a key building block in this transformation. However, the development of a smart product requires many digital skills and knowledge, which regular companies do not have. To facilitate the design and conceptualization of smart products, this paper presents a use-case-based information systems architecture prototype for smart products. Furthermore, the paper features the application and evaluation of the architecture on two different smart product projects. The use of such an architecture as a reference in smart product development serves as a huge advantage and accelerator for inexperienced companies, allowing faster entry into this new field of business. [https://link.springer.com/chapter/10.1007/978-3-031-14844-6_16]
Digital technologies have gained significant importance in the course of the 4th Industrial Revolution and these technologies are widely implemented, nowadays. However, it is necessary to bear in mind that an ill-considered use can quickly have a negative impact on the environment in which the technology is used. For more responsible and sustainable use, the regulation of digital technologies is therefore necessary today. Since the government is taking a very slow response, as the example of the AI Act shows, companies need to take action themselves today. In this context, one of the central questions for companies is: "Which digital technologies are relevant for manufacturing companies in terms of regulation? This paper conducted a quantitative Delphi study to answer this question. The results of the Delphi study are presented and evaluated within the framework of a data analysis. In addition, it will be discussed how to proceed with the results so that manufacturing companies can benefit from them. Furthermore, the paper contributes to the development of an AI platform in the German research project PAIRS by investigating the compliance relevance of artificial intelligence applications.
Digital technologies such as 5G, augmented reality, and artificial intelligence (AI) are currently being used in various ways by manufacturing companies. As the fourth industrial revolution progresses, it has become apparent that reckless use and inadequate regulation of these technologies have a detrimental effect on the environment in which they are utilized. Therefore, regulation of digital technologies is imperative today to ensure more responsible and sustainable use. While governments usually establish regulations, progress is not keeping pace with the demands and hazards of employing digital technologies. The European AI law serves as an example of the considerable distance yet to be covered before binding guidelines are established. Consequently, companies must take proactive measures today to ensure that they use digital technologies responsibly in their environments. In this context, identifying which digital technologies are pertinent to manufacturing companies in terms of regulation is crucial. Furthermore, a comprehensive approach is required to design compliance holistically for digital technologies and to systematically derive the corresponding guidelines. This paper introduces a set of models that not only determine the importance of
compliance in the application of different technologies but also present a framework for methodically designing compliance. Furthermore, the paper contributes to the development of an AI platform in the German research project PAIRS by investigating the compliance relevance of applications such as artificial intelligence.
Industry 4.0 is driven by Cyber-Physical Systems and Smart Products. Smart Products provide a value to both its users and its manufacturers in terms of a closer connection to the customer and his data as well as the provided smart services. However, many companies, especially SMEs, struggle with the transformation of their existing product portfolio into smart products. In order to facilitate this process, this paper presents a set of smart product use-cases from a manufacturer’s perspective. These use-cases can guide the definition of a smart product and be used during its architecture development and realization. Initially the paper gives an introduction in the field of smart products. After that the research results, based on case-study research, are presented. This includes the methodological approach, the case-study data collection and analysis. Finally, a set of use-cases, their definitions and components are presented and highlighted from the perspective of a smart product manufacturer.
Methods of machine learning (ML) are notoriously difficult for enterprises to employ productively. Data science is not a core skill of most companies, and acquiring external talent is expensive. Automated machine learning (Auto-ML) aims to alleviate this, democratising machine learning by introducing elements such as low-code / no-code functionalities into its model creation process. Multiple applications are possible for Auto-ML, such as Natural Language Processing (NLP), predictive modelling and optimization. However, employing Auto-ML still proves difficult for companies due to the dynamic vendor market: The solutions vary in scope and functionality while providers do little to delineate their offerings from related solutions like industrial IoT-Platforms. Additionally, the current research on Auto-ML focuses on mathematical optimization of the underlying algorithms, with diminishing returns for end users. The aim of this paper is to provide an overview over available, user-friendly ML technology through a descriptive model of the functions of current Auto-ML solutions. The model was created based on case studies of available solutions and an analysis of relevant literature. This method yielded a comprehensive function tree for Auto-ML solutions along with a methodology to update the descriptive model in case the dynamic provider market changes. Thus, the paper catalyses the use of ML in companies by providing companies and stakeholders with a framework to assess the functional scope of Auto-ML solutions.
Methods of machine learning (ML) are difficult for manufacturing companies to employ productively. Data science is not their core skill, and acquiring talent is expensive. Automated machine learning (Auto-ML) aims to alleviate this, democratizing machine learning by introducing elements such as low-code or no-code functionalities into its model creation process. Due to the dynamic vendor market of Auto-ML, it is difficult for manufacturing companies to successfully implement this technology. Different solutions as well as constantly changing requirements and functional scopes make a correct software selection difficult. This paper aims to alleviate said challenge by providing a longlist of requirements that companies should pay attention to when selecting a solution for their use case. The paper is part of a larger research effort, in which a structured selection process for Auto-ML solutions in manufacturing companies is designed. The longlist itself is the result of six case studies of different manufacturing companies, following the method of case study research by Eisenhardt. A total of 75 distinct requirements were identified, spanning the entire machine learning and modeling pipeline.
One major problem of today’s producing companies is to reach a high adherence to delivery dates while considering the volatile market situation as well as economic aspects. This problem can only be solved by using a production control that is optimally adapted to the processes. A good working, process-oriented production control is essential for being able to control the production situation and to ensure a high adherence to delivery dates. Data generation and processing determine the success of production control. Current processes and IT systems have several shortcomings in meeting these challenges.
The solution for this problem is the so called “cyber physical production control” (CPPC). It optimally supports the production scheduler in his decision making process based on real-time high-resolution data. With the help of data analytics, the production controller receives decision support over various steps. Due to CPPC, the overall goal of a high adherence to delivery dates can be fundamentally increased.
In recent years supply chain participants are increasingly suffering the effects of disturbances in transportation supply chains. Both, dynamics in consumer demands and global supply chains lead to a growth in unplanned supply chain events. These can cause from rather manageable disturbances through to complete break-downs of transportation chains, resulting in high follow-up and penalty costs.
Consequently, concepts for an efficient supply chain disturbance management are needed, preferably with a real-time identification and reaction to disturbance events. Therefore in the following paper the research results of the German research project Smart Logistic Grids with the focus on designing an integrated model for the real-time disturbance management in transportation supply networks are presented. This includes the introduction of elaborated classification models for disturbances and action patterns as well as an associated costs and performance measurement system. Finally, a procedure model for the disturbance management is presented.
In the age of digitalization, manufacturing companies are under increased pressure to change due to product complexity, growing customer requirements and digital business models. The increasing digitization of processes and products is opening up numerous opportunities for mechanical engineering companies to exploit the resulting potential for value creation. Subscription business is a new form of business model in the mechanical engineering industry, which aims to continuously increase customer benefit to align the interests of both companies and customers. Characterized by a permanent data exchange, databased learning about customer behavior, and the transfer into continuous innovations to increase customer value, subscription business helps to make Industry 4.0 profitable. The fact that machines and plants are connected to the internet and exchange large amounts of data results in critical information security risks. In addition, the loss of knowledge and control, data misuse and espionage, as well as the manipulation of transaction or production data in the context of subscription transactions are particularly high risks. Complementary to direct and obvious consequences such as loss of production, the attacks are increasingly shifting to non-transparent and creeping impairments of production or product quality, which are only apparent at a late stage, or the influencing of payment flows. A transparent presentation of possible risks and their scope, as well as their interrelationships, does not exist. This paper shows a research approach in which the structure of subscription models and their different manifestations based on their risks and vulnerabilities are characterized. This allows suitable cyber security measures to be taken at an early stage. From this basis, companies can secure existing or planned subscription business models and thus strengthen the trust of business partners and customers.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.
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.
Producing companies are confronted with a growing number of product ramp-ups, since product life cycles are decreasing and product diversity is increasing. Production Planning and Control (PPC) of ramp-up products is particularly challenging, as there is a significant lack of reliable experienced data.
The information deficit is exceptionally high for the first step of PPC process, namely Production Program Planning (PPP). The paper in hand proposes an innovative approach of cybernetic PPP that enables companies with numerous ramp-ups to design reliable and fast PPP processes that can react highly adaptable on unpredictable environmental disturbances. The Viable System Model (VSM) is used as frame of reference for the design of PPP processes in line with principles from management cybernetics.
The importance of social networks and, in particular, enterprise social networks in business contexts is increasing significantly. Regarding the prerequisites for a successful implementation of an enterprise social network, exclusively providing the technical infrastructure is insufficient. A holistic view that considers and integrates different perspectives is crucial for success. This includes technological, organisational and human aspects as equally important parts of the network. This paper identifies prerequisites for a successful launch of enterprise social networks and groups them along these three dimensions.
Pricing is one of the most important, but underestimated tools, to enhance a company's profitability. Especially value-based pricing has a high potential to reach higher levels of satisfaction because it equates the needs of providers and customers. Even though, it is a well-known price model and promises higher satisfaction, many companies struggle to implement it. Especially the manufacturing industry is characterized by cost-plus pricing and competition-based pricing. However, especially for digital products these pricing strategies are insufficient. Therefore, this paper aims at exploring the design fields for value-based pricing of digital products in the manufacturing industry. To achieve this, the basics of digital products and value-based pricing are explored. Furthermore, an expert workshop is conducted that follows a framework for value-based pricing consisting of four consecutive steps analysis, price strategy, pricing, and market launch to capture the design fields. This paper concludes with limitations, and practical and research implications.
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.
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.
The steady increasing of supply chain complexity due to a rising global cross-linking of production and sales regions leads to an increasing sensitivity to disturbances while in the meantime the requirements of the availability, the time of delivery and the security of supplies within the supply chain increases. To meet this challenges the security of the supply chain infrastructure and the feasibility of supply chain processes need to be ensured, despite of the high specialization within the supply chain partners, the low stock and time buffers, and the information shortcoming between supply chain partners.
In this research, a System Dynamics simulation model, based on the manufacturing supply chain model of Sterman, has been developed for representing the actual complexity and dynamic in manufacturing supply chains. Therefore, the modeled manufacturing supply chain shows the processes of a four level supply chain focusing the processes and interactions of the mid-positioned two supply chain participants. The main contribution of the work described in this paper, is the description and implementation of necessary additional modules and parameters to Sterman’s basic model for the diagnosis of disturbance impacts as well as for the realization of supply chain adjustments. Finally, the model has been simulated and examined for realistic values.
Applying Game Theory in Procurement. An Approach for Coping with Dynamic Conditions in Supply Chains
(2014)
Producing companies are facing continually changing conditions accompanied by higher requirements with respect to the flexible configuration of their supply chain. The challenge resulting from this initial situation is to develop systems that have the availability of adjusting their planning procedures and aims depended on the situation and therefore accommodate the increasing demand for flexibility. To address this challenge game theory seems to be a new and promising approach. The aim and added-value of the research work described here is to develop a decision model for the area of procurement using solutions concepts of game theory. Especially in times of high volatility such a decision model can support material requirements planners better than today's common selective planning logics.
In this paper the model to be solved by game theoretic solution concepts is presented. A research study has been conducted which proved the need for combining existing methods of procurement quantity calculation by means of game theoretic solution concepts. Some of the results of this study are presented in this paper. In the last part of the paper a structure for classifying game theoretic models is presented. This structure should support in selecting the appropriate solution concept for real-life decision-situations and is able to support in any practical application-field finding out the most appropriate game theoretic solution concept.
In the near future, tooling companies will offer their customers not just maintenance services, but complex remote service packages for their engineering asset management, which is the total management of physical – not financial – assets. The overall goal is to enhance the efficiency of the engineering asset, e.g. to reduce TCO, on the customers´ site by means of value creating partnerships. These partnerships may be, e.g. the classical output or reliability partnership, but also process optimizing partnerships or lifecycle partnerships. The process optimizing partnership offers, e.g. the optimization of the system’s performance or the output quality, an optimized ramp-up and restart procedure or optimization of the production process parameters. The lifecycle partnership, on the other hand, accompanies the intelligent tool-machine-system throughout the whole lifecycle, which includes, e.g. provision of spare parts during the entire usage phase, storing, refurbishment, recycling and even the support of relocation of production facilities. Intelligent remote services have great potential for realizing all these partnerships.
To realize such engineering asset-related partnerships, two major tasks have to be done. First, there has to be the intelligent tool-machine system, which delivers the information that is required for these services. And furthermore, this information has to be integrated into the maintenance processes, so that it is delivered at the right place and time and in the required form. Second, the activities and processes that are combined to the engineering asset-related partnerships have to be configured out of standardized service and process modules. Therefore configuration logic is essential.
In this paper, we firstly present a target system which is deduced to assess the economic profitability of reverse supply chains. Considering this, we analyse process reference models to define relevant components of an appropriate target system.
Subsequently, we define applicable business models which are the basis for the manufacturer to offer new services to its customers on the one hand and to manage a goal-oriented return, recovery and resell of used products and components on the other hand. This will be done based on the morphology methodology in order to understand the characteristics and attributes of reverse supply chains.
Systematization models for taylor-made sensor system applications and sensor data fit in production
(2015)
Industrial digitalization to realize smart factories is driven by an informatory base of high-resolution data provided by sensor systems on the shop-floor level. The challenge of technical availability of fitting measurement solutions nowadays turns in a struggle of finding the optimal solution for a specific task in an ever-growing sensor market. This paper analyzes and specifies necessary models to systematically derive and describe organizational, technical and informatory requirements for sensor system applications increasing the technological fit for faster integration and lower misinvestment rates.
The House of Maintenance
(2009)
In order to guarantee an efficient and effective employment of production equipment, it is essential to identify any possible potential for improving performance, not only in the production process, but also in supporting areas such as maintenance. One of the major tasks in increasing maintenance performance consists of systematically identifying the company’s most significant weaknesses in maintenance organisation and thus being able to implement improvements there where they are most needed.
But how is a company to tackle this important task? To answer this question, this paper describes an assessment and improvement approach, based on a capability maturity model (CMM). By means of this approach, the status-quo of a maintenance organisation can be analysed and its individual improvement opportunities identified.
In order to cope with the challenges of an increased demand for flexibility, quality and availability of production, maintenance measures provide a major competiveness factor for manufacturing companies. Yet, interdependencies between maintenance and production activities as well as differing target systems within the functional units of an enterprise, especially production and maintenance, raise needs for extended coordination efforts. This paper aims to develop an innovative approach for the coordination between maintenance and production activities for industrial production companies. To achieve this, the novel coordination mechanism is used. It helps to achieve maximised operational availability— for a maximised output of the production system at optimal costs. Based on the developed model, the present paper identifies findings regarding the impact of different maintenance strategies on the medium-term economic efficiency of the production system.
Nowadays, providing purchasable goods is not enough for a company to survive on the global market. Because of competitive prices and a large range of products available, companies need to offer additional benefits to their customers in order to create a unique selling point. They add services to their product portfolio and offer clients the opportunity to acquire an additional service solution to go with it. The offered services need to fit to the customer's needs, resulting in a variety of available services, great complexity of the service range and decreasing transparency of the resource utilization. This paper addresses the problem by identifying variant-creating factors in product service systems, transferring them into an organizational framework and verifying their significance.
The design of data-driven industrial services in the context of industry 4.0 represents a major challenge for industrial service providers and manufacturing companies for investment goods. Data-driven services require technological and strategic components that most companies have not build up yet and that differ from current configurations. That is why many companies lack a systematic approach and implementation competence for the use of data in the context of industrial services and therefore face the challenge of not being able to expand their market position in an ever-growing competition for data.
The present paper addresses this research deficit with the aim of describing strategic features and characteristics of data-driven industrial services by identifying the related crucial features and characteristics through a morphological approach. This will enable industrial service providers to improve strategic and operative management decisions in order to define a specific strategy and to configure data-driven services.
In order to achieve a holistic cost management approach, the maintenance and service costs should already be assessed during the development of machines and equipment. The required information in the company, like PLM, process and test data, are commonly not available or vague, especially in early development phases. This paper introduces a feasible method for an early assessment of maintenance and service costs during product development. In doing so, appropriate cost assessment methods are selected, based on the availability and quality of the existing information in the individual development phases. The evaluations of these methods are aggregated in a software tool, so that the respective cost information is displayed with a maximum, minimum and most probable value. The developed software tool was validated in cooperation with a new electric vehicle manufacturer.
Today, machine manufacturers generate a significant share of their revenues with the provision of services. At the same time, they are confronted with the challenge of adopting of Industrie 4.0.
One of the most important Industrie 4.0 concepts is the idea of the digital shadow, which contributes to the comprehensive structuring of different kinds of data from different data sources. It can be defined as the sufficiently precise, digital representation of reality in real-time.
Thus, it also functions as a database of the considered area of a company that can be used for numerous applications. It serves as a central platform for the aggregation and distribution of data. Thereby, it helps to open isolated data silos. A system architecture that enables extraction of data from various sources and the aggregation of that data is an important prerequisite for the digital shadow.
In addition, the merger of data from different sources requires a model of the part of the company to be mapped digitally. In this paper, we focus on maintenance, repair and overhaul (MRO) services of machine manufacturers. The scope comprises the whole order processing of a service including the utilized resources and the obtained results.
MRO services and their single elements are mapped and structured using a case study research in a first step. Those elements provide a basis for designing the digital shadow. A second contribution of this paper is a data model for the digital shadow of MRO services that entails a comprehensive representation of that department.
This paper presents a simulation approach for service production processes on the basis of which an optimal operating point for service systems can be identified. The approach specifically takes into account the characteristics of human behavior. The simulation is based on a system theory approach to the service delivery process. A specific use case of the simulation approach is presented in detail to illustrate how characteristic curves are deduced and an optimal operating point is obtained.
Industrial companies face tremendous challenges to plan the resources needed to meet future market demands when implementing a PSS based solution portfolio. This paper deals with enhancing the PSS research landscape by presenting an approach to enable better resource-planning in PSS based businesses. In particular, a model is proposed which links resource structures with customer offerings. Linkages are implemented, which connect resources and their use in processes. The model contributes to better understand the complexity in resource structures and elements in the PSS and helps to better understand and describe the structural integration of resources in PSS. This is an important prerequisite for the planning of PSS and allows a qualitative and quantitative description of the service resources allocation enabling companies to build the competence needed to meet customer requirements. A case study based approach was applied for model development.
More and more companies in the mechanical and plant engineering industry are transforming their business model and evolving from product to solution providers. Subscription business models play a key role in this development. They enable companies to enter long-term collaborative relationships with customers and thus monetize the potential of Industry 4.0. However, this development is not easy for many companies and is associated with numerous hurdles. One of these hurdles is the development of a suitable range of services tailored to customer needs. In this context, the bundling of individual services to service modules plays a key role in realizing new value propositions. In practice, however, companies often lack an understanding of which services need to be combined in what way to be able to realize new value propositions. Accordingly, the goal of this work is to identify relevant services for subscription business models, to cluster them into meaningful value-adding bundles, and to derive new value propositions accordingly. The new value propositions in turn enable mechanical and plant engineering companies to strengthen customer loyalty and thus achieve long-term economic success.
Growing information systems (IS) often come along with growing IT complexity, because of emerging rag rug landscapes. This development causes rising IT costs and dependencies, which hinder the maintenance and expansion of the IS landscape. This article outlines the current research on published and presented methods to manage the rising IT complexity in a literature review. Because definitions of “IT complexity” vary a lot in literature, this paper also includes a definition of the term. In addition to that, it delivers a presentation of the used research methodology. Subsequently, it presents the findings in literature, highlights the research gap and – based on the literature analysis – presents the steps that need to be taken. A discussion of the results and a summary complete the article.
Growing information systems (IS) often come along with growing IT complexity, because of emerging rag rug landscapes. This development causes rising IT costs and dependencies, which hinder the maintenance and expansion of the IS landscape. This article outlines the current research on published and presented methods to manage the rising IT complexity in a literature review. Because definitions of “IT complexity” vary a lot in literature, this paper also includes a definition of the term. In addition to that, it delivers a presentation of the used research methodology. Subsequently, it presents the findings in literature, highlights the research gap and – based on the literature analysis – presents, the steps that need to be taken. A discussion of the results and a summary complete the article.
Assessment of IS Integration Efforts to Implement the Internet of Production Reference Architecture
(2018)
As part of a collaborative network, manufacturing companies are required to be agile and accelerate their decision making. To do so, a high amount of data is available and needs to be utilized. To enable this from a company internal information system perspective, the Internet of Production (IoP) describes a future information system (IS) architecture. Core element of the IoP is a digital platform building the basis for a network of cognitive systems. To implement and continuously further develop the IoP, manufacturing companies need to make architecture-related decisions concerning the accessibility of data, the processing of the data as well as the visualization of the information. The goal of this research is the development of a decision-support methodology to make those decisions, taking under consideration the evaluated IS integration effort. Therefore, this paper describes the allocation of IS functions and identifies the effort drivers for the respective IS integration by analyzing the integration possibilities. Conclusively this approach will be validated in a case study.
The number of available technologies is constantly rising. Be it additive manufacturing, artificial intelligence (AI) or distributed ledger technologies. The choice of the right technologies may decide the fate of a company. Due to the overwhelming amount of information sources, regular technology market research becomes increasingly challenging, especially for SMEs. In order to assist the technology management process, the authors will introduce the architecture of an automated, AI-based technology radar. The architecture will automatically collect data from relevant sources, assess the relevance of the respective technology (i.e. their maturity level) and then visualize it on the radar map.
Manufacturing companies face the challenge of selecting digitalization measures that fit their strategy. Measures that are initiated and not aligned with the company’s strategy carry the risk of failing due to lack of relevance. This leads to an ineffective use of scarce human and financial resources. This paper presents a target system to help companies select relevant digitalization measures compliant with their strategy for IT-OT-integration projects. The target system was developed based on literature research and expert interviews, and later validated in two use cases. The target system considers the goals of production companies and combines them with digitalization measures. The measures are classified by different maturity levels required for their realization. Thus, the target system enables manufacturing companies to evaluate digitalization measures with regards to their strategic relevance and the required Industrie 4.0 maturity level for their realization. This ensures an effective use of resources.
Reinforced through the pandemic and shaped by digitalization, today's professional working environment is in a state of transformation. Working remotely has become a vital component of many professions' regular routines. The design of remote work environments presents challenges to organizations of all sizes. By providing a classification, this paper reveals a comprehensive understanding of the fields of design to be considered to establish lasting remote work concepts in organizations. A hierarchical classification with four dimensions consisting of human, technology, organization, and culture, seven design elements and, twenty design parameters indicates to organizations the fields of design that need to be examined. To satisfy both the theoretical foundation and the practical application, design elements are derived by implementing a systematic review of the literature that represents key areas of interest for remote work. Additionally, these are verified and complemented by a dedicated case study research to incorporate practice-oriented design parameters.
Production systems are exposed to an increasing planning-related uncertainty and susceptibility. The inter-company coordination has not sufficiently been considered in contemporary concepts of supply chain management. Against this background, it is crucial to provide a suitable tool that increases the planning capability of the players and the robustness of the supply chain as a whole. Therefore, this article provides the relevant causes and effects of planning uncertainties within the production planning and presents based on that an inter-company supply chain planning concept.
Long-term production management defines the future production structure and ensures the long-term competitiveness. Companies around the world currently have to deal with the challenge of making decisions in an uncertain and rapidly changing environment. The quality of decision-making suffers from the rapidly changing global market requirements and the uniqueness and infrequency with which decisions are made. Since decisions in long-term production management can rarely be reversed and are associated with high costs, an increase in decision quality is urgently needed. To this end, four different applications are presented in the following, which support the decision process by increasing decision quality and make uncertainty manageable. For each of the applications presented, a separate digital shadow was built with the objective of being able to make better decisions from existing data from production and the environment. In addition, a linking of the applications is being pursued:
The Best Practice Sharing App creates transparency about existing production knowledge through the data-based identification of comparable production processes in the production network and helps to share best practices between sites. With the Supply Chain Cockpit, resilience can be increased through a data-based design of the procurement strategy that enables to manage disruptions. By adapting the procurement strategy for example by choosing suppliers at different locations the impact of disruptions can be reduced. While the Supply Chain Cockpit focuses on the strategy and decisions that affect the external partners (e.g., suppliers), the Data-Driven Site Selection concentrates on determining the sites of the company-internal global production network by creating transparency in the decision process of site selections. Different external data from various sources are analyzed and visualized in an appropriate way to support the decision process. Finally, the issue of sustainability is also crucial for successful long-term production management. Thus, the Sustainable Footprint Design App presents an approach that takes into account key sustainability indicators for network design. [https://link.springer.com/referenceworkentry/10.1007/978-3-030-98062-7_15-1]
The planning and implementation of migration projects in global production networks is a complex planning task that is confronted with a dynamic global environment with highly complex interdependencies. Today's migration approaches are either large projects or isolated local
investments. As such, they are not suitable for simultaneously addressing interdependencies and continuity. This paper illustrates a holistic and continuous methodology for rolling migration planning and implementation in global production networks. Seven steps enable the transformation from the current state of the production network into a target state regarding internal as well as external dynamics and interactions.
The Aim of this article is to provide a framework which enhances the existing scope of manufacturing asset management by specifically addressing industrial services provided by external suppliers as an integral part of today’s manufacturing structures. Existing research shows that sourcing industrial services from specialized service organizations establishes complex and unique interdependencies and links total production efficiency to the performance of the external service suppliers. Within the context of the EU-Project InCoCo-S - “Innovation, Coordination and Collaboration in Service Driven Manufacturing Supply Chains” a standard business reference model with key focus on operation and integration of business related services (BRS) in the supply chain has been developed. Based on the service type retrofit this paper aims on the one hand to present the modules of the reference model and on the other hand to explain how the model can be used to enhance the retrofit business.
Companies in the manufacturing industry are shifting towards a more service-oriented business model. One major challenge of this transformation is the information exchange between the different stages of the product-service-lifecycle.
We extend the existing body of knowledge by conducting an empirical study in the German manufacturing industry, addressing the cause-effect relationship between 1) information gathering over the product-service-lifecycle, 2) data analytics 3) interpretation and use of new information and 4) distribution of new product related information and the impact of these four aspects on performance.
The analysis reveals five different success factors with a significant impact on innovation and operation excellence. The implications from our research can help to develop new and more practical oriented Lifecycle-Product-Service-System approaches on the one hand. On the other hand it enables companies to focus on activities leading to higher service efficiency. Creating new stimuli will transform their existing business model to a more service-oriented one.
Assets of integrated production systems, especially in the heavy industry, are facing high requirements in terms of reliability and availability. In case of component breakdown, the operating firm is confronted with high costs due to downtime and loss of production. Modern maintenance concepts in combination with advanced technologies can help to improve the plant availability and reduce the downtime costs caused by unplanned breakdowns. Against this background, the research institutes FIR and IMR from RWTH Aachen University, Germany, are collaborating within the research project “SiZu”. This project deals with the integration of condition monitoring system and real time simulation to assess the condition of components and to support failure cause analysis.
The mechanical and plant engineering industry faces a stagnation in the new machinery market and is relying on innovative business models such as subscription to overcome these. In this business model, individually customized solution packages are offered. The success of these models depends directly on the future success of the customer, making the selection of the right customers crucial. The aim of this paper is to identify the criteria that indicate the suitability of customers for subscription models. While there are individual descriptions of suitability criteria in the existing literature, there is a lack of comprehensive consideration of customer relationship, customer company, and customer market, as the extensive consideration was not necessary in the transactional sale of machines until now. Therefore, in this study, expert interviews are conducted with companies in mechanical and plant engineering that offer subscription models. The results show criteria that are used to evaluate customers in the six main categories of creditworthiness, market potential, benefit potential, feasibility, relationship, and sales effort. In total, 24 criteria can provide insight into the suitability of the customer for a successful subscription relationship. These criteria are intended to develop target systems that meet the requirements of different stakeholders in the customer and thus support the economic viability of these business models.
As industrial service portfolios grow, many companies overlook the implications of their business operations: rising complexity and resulting complexity costs. One reason are nonexistent tools that help service managers to decide in planning phases with an adequate effort about the implications that variety and complexity decisions have on the complexity costs of their portfolio. This paper depicts the challenges service companies have to face in this context and presents a concept of a heuristic approach to evaluate the complexity costs for industrial services. The concept is being developed in strong cooperation with industrial partners.
Outsourcing of logistics operations (especially transportation, distribution & warehousing) is one of the most viable options exercised by the customers to excel in their logistic operations. Despite the growing outsourcing of logistics services to 3PL providers, both the service providers & their customers are facing tremendous problems in synchronizing the business processes & analyzing the performance using common key performance indicators. There is a huge demand for an integrated approach to help 3PL and their customers better synchronize their business processes and have common goals & perspectives. Such integrated approaches often take shape of a process oriented reference model covering many diverse aspects related to the operations & controlling of any business. In this paper, an integrated reference model to support 3PL service operations is presented. The Logistics Reference Model (LRM) developed & validated in some 3PL service companies encompasses standard business processes, performance measurement system and best practices.