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A large number of product-accompanying services in the machinery and plant engineering industry is based on the cross-company exchange of data and information. By providing services, additional sales potential on the manufacturer side as well as far-reaching product and process advantages for appliers can be reached. However, the necessary cross-company exchange of information is nowadays limited due to a lack of trust in the interacting partner and the applicable existing technologies, which results in significant losses in the terms of business potential. The uncovering of this potential now seems to be made possible by the use of the Blockchain technology. Through the key factors security, immutability, transparency and decentralisation, it serves as an enabler for cross-company communication and product-accompanying services. The technological implementation of a Blockchain can take on a broad spectrum of attributes, which can lead to decisive restrictions for the execution of services. This justifies the necessity for a qualified and context-related assessment of service-types-individual specifications and the resulting requirements on the system. Within the scope of this paper, different types of product-accompanying services are identified and analysed regarding their requirements for a Blockchain-based machinery and plant connection. This can serve as a basis for a qualified and goal-oriented configuration of the Blockchain.
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
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.
The Impact Of Manufacturing Execution Systems On The Digital Transformation Of Production Systems
(2021)
With the focus of manufacturing companies on the digital transformation, Manufacturing Execution Systems are market-ready, modular software solutions for manufacturing companies to integrate the value-adding and supporting processes horizontal and vertical in the company. Companies, especially small and mediumsized companies, face high internal and external costs for the implementation of the MES modules. An advantage of MES is the possibility to implement the systems in a continually, module-by-module approach, with the benefit of timely distributed investments. By realizing fast improvements, companies can use the benefits for further module implementations. This paper proposes a maturity model to measure the impact of an MES on the digital transformation of the company’s production systems. The model fulfils two purposes. The first, companies can measure the impact based on the difference between its current maturity index and the potential index of an implemented MES. The second is, the user can identify what impact an MES has in general on the digital transformation since the developed maturity model is derived from an established industry 4.0 maturity model. The development of the maturity model is based on the methodologies of AKKASOGLU and focuses on the further development of an established model. As an outlook, the application of the model will be described briefly. The proposed maturity model can directly be used by practitioners and offers implications for further development of MES functionalities.
Feasibility Analysis of Entity Recognition as a Means to Create an Autonomous Technology Radar
(2021)
Mit den neuesten Technologietrends auf dem Laufenden zu bleiben, ist für Fertigungsunternehmen eine entscheidende Aufgabe, um auf einem global wettbewerbsfähigen Markt erfolgreich zu bleiben. Die Erstellung eines Technologieradars ist ein etablierter, jedoch meist manueller Prozess zur Visualisierung der neuesten Technologietrends.
Der Herausforderung, Technologien zu identifizieren und zu visualisieren, widmet sich das Projekt TechRad, das maschinelles Lernen einsetzt, um ein autonomes Technologie-Scouting-Radar zu realisieren. Eine der Kernfunktionen ist die Identifizierung von Technologien in Textdokumenten. Dies wird durch natürliche Sprachverarbeitung (NLP) realisiert.
Dieser Beitrag fasst die Herausforderungen und möglichen Lösungen für den Einsatz von Entity Recognition zur Identifikation relevanter Technologien in Textdokumenten zusammen. Die Autoren stellen eine frühe Phase der Implementierung des Entity Recognition Modells vor. Dies beinhaltet die Auswahl von Transfer Learning als geeignete Methode, die Erstellung eines Datensatzes, der aus verschiedenen Datenquellen besteht, sowie den angewandten Modell-Trainings-Prozess. Abschließend wird die Leistungsfähigkeit der gewählten Methode in einer Reihe von Tests überprüft und bewertet.
Industrial practice shows a strong trend towards digitalization. It is not only economic crises, such as those triggered by Covid-19, that are reinforcing this trend. It is also the entrepreneurial urge to fulfill customer wishes in the best possible way and to adapt to new requirements as quickly as possible. Due to the advancing digitalization, the role of business application systems in manufacturing companies is therefore becoming increasingly important. The data processed in IT-Systems represent a great potential, especially for the evaluation of change requests in production. Through efficient change management, companies can record and process changes quickly. However, the necessary data basis to decide on existing change requests is still hardly used. Existing IT-Systems for change management coordinate the processing of change requests, but do not relate to data of operational application systems such as Enterprise-Resource-Planning. Therefore, a conceptual approach is required for the evaluation of change requests. This approach is based on an objective recording system that enables the transformation from the change description to an evaluation space. The paper presents an approach for the systematic transfer of requirement characteristics into the world of operational IT-Systems.
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.
Industrial companies are moving to a solution driven business by offering smart product service systems (Smart PSS). In addition to an existing portfolio of physical goods and technical services, companies develop new digital services and combine all three offerings to an integrated digital solution business. While the development of new digital services does not pose any major challenges for companies, the successful sale of Smart PSS does. Due to changing customer requirements and value propositions of a solution, the sale of Smart PSS requires new design principles for the sales organization compared to the simple sale of physical goods or technical services. While there are already many publications on the topic of industrial sales in research, the description of Smart PSS in particular represents a new field of research. The combination of both topics is therefore not only interesting from a theoretical point of view, but also has a particularly high practical relevance and impact for industrial companies. This paper therefore describes on the one hand, which characteristics can be used to derive customer requirements for Smart PSS and on the other hand, which effects these requirements have on the sales organization of the industrial company. The design principles give recommendations for the organizational structure, the resources, the information systems and the culture of the company depending on the targeted customer type. In order to identify and describe both the customer requirements and the design principles, two morphological boxes were developed based on a literature research and semi-structured interviews with industrial companies. The paper gives an outlook on the different characteristics of the design recommendations and describes first best practices for the successful transformation of the sales organization.
One of the major challenges facing today´s manufacturing industry is to differentiate from competition in a highly globalized world. As a consequence to the increasing competitive pressure, many companies transform their product centered business models towards service based business models to differentiate from competition. However, the transformation is often underestimated regarding its complexity and its management challenges to behavioral change.
As a consequence lots of transformation initiatives fail. Besides difficulties in structuring the magnitude of changes in processes and structures, many transformation managers do not perceive the risk of employee resistance against changes, which is one of the key factors causing the failure of transformation. The objective of this paper is to enhance the existing body of research on manufacturer´s organizational transformation towards Product-Service Systems. More detailed, the objective is to develop new knowledge to support the management during the decision-making process in the way how and by means of which instruments the change of behavior can be supported when transforming from a manufacturer to a solution.
We developed a reference framework which structures and defines the relevant dimensions of behavioral change. The identification and validation of the success factors build the second component of our research. We conducted an empirical investigation in the German manufacturing industry and got 79 data sets.
Structural equation modelling was applied for the analyses and the validation of the hypotheses. By this analysis we linked management practice with employee behavior and transformational success variables. On the basis of the gained insights decisions can be made concerning the successful transformation from manufacturer to a solution-oriented service provider.
Competitive differentiation in the manufacturing sector is no longer based on product and service innovations alone but on the ability to monetize the usage phase of products and services. To this end, manufacturers are increasingly looking at so-called subscription business models as a way of supplementing the traditional sale of products and services. Since supplier success in the subscription business is directly dependent on customer success, the setup and expansion of a so-called Customer Success Management (CSM) is required. While CSM has already been established in the software industry for several years, companies in the manufacturing sector are often still in the conceptual phase of a CSM, parallel to the setup and expansion of their subscription business. Therefore, this paper aims to support the set-up of a CSM by providing a reference data model, based on case study research, that can be used to support the organizational or daily CSM tasks and to serve as a blueprint for conceptualizing CSM-specific IT systems.
Systematisation Approach
(2023)
Current megatrends such as globalisation and digitalisation are increasing complexity, making systems for well-founded and short-term decision support indispensable. A necessary condition for reliable decision-making is high data quality. In practice, it is repeatedly shown that data quality is insufficient, especially in master and transaction data. Moreover, upcoming approaches for data-based decisions consistently raise the required level of data quality. Hence, the importance of handling insufficient data quality is currently and will remain elementary. Since the literature does not systematically consider the possibilities in the case of insufficient data quality, this paper presents a general model and systematic approach for handling those cases in real-world scenarios. The model developed here presents the various possibilities of handling insufficient data quality in a process-based approach as a framework for decision support. The individual aspects of the model are examined in more detail along the process chain from data acquisition to final data processing. Subsequently, the systematic approach is applied and contextualised for production planning and supply chain event management, respectively. Due to their general validity, the results enable companies to manage insufficient data quality systematically.
Volatile electricity prices caused by an increase of renewable energy sources push producing companies towards taking in an active role in balancing the electricity grid. Possible actions at the customer side to actively adapt to volatile energy prices are called demand response actions. In production logistics such actions can be the modification of production schedules motivated by possible economic benefits. So far, the focus in scheduling problems has been the optimization in the dimensions of quality, time and costs. This paper presents the results of a simulation study on the economic benefits of demand response actions for a generic production system.
Today’s manufacturers are facing numerous challenges such as highly entangled and interconnected supply chains, shortening product lifecycles and growing product complexity. They thus feel the need to adjust and adapt faster on all levels of value creation. Self-optimization as a basic principle appears a promising approach to handle complexity and unforeseen disturbances within supply chains, machines and processes. Therefore it will improve the resilience and competitiveness of manufacturing companies.
This paper gives an introduction to the concept of self-optimizing production systems. After a short historical review, the different levels of value creation from supply chain design and management to manufacturing and assembly are analyzed considering their specific demands and needs for self-optimization. Examples from each of these levels are used to illustrate the concept of self-optimization as well as to outline its potential for flexibility and productivity. This paper closes with an outlook on the current scientific work and promising new fields of action.
Pricing is one of the most important, but underestimated tools, to enhance a company's profitability. Especially in the furniture sector, customers place a special interest in cost-efficient products and easy processes. Individualised and sustainable furniture can help to create a unique selling point and deliver real value to the customers. Therefore, a platform to create designs together is needed and can involve several stakeholders in the design and production phase. However, in order to include several stakeholders, the pricing and revenue model need to reflect individual needs and be a benefit to all. In this paper, the initial situation and potential revenue model options will be presented. Furthermore, multiple scenarios for practical use will be discovered and an overview given.
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.