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Increasing productivity in product-service systems is a vital success factor for industrialized economies and individual businesses. The service production is typically described as an integrated value chain setting, in which the provider and the customer are co-creators.
This paper embraces a characteristic curve model in order to illustrate the influence of the customer on the productivity of service production. The characteristic curves are derived from a system dynamics simulation model for a synchronized takt-based service production. In conclusion this research leads to designs recommendations for service production systems in order to reduce lead times and increase adherence to delivery dates.
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.
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”.
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.
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.
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.
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.
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.
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.
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.
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.
Today, manufacturing companies are facing the influences of a dynamic environment and the continuously increasing planning complexity. Using advanced data analytics methods, processes can be improved by analyzing historical data, detecting patterns and deriving measures to counteract the issues. The basis of such approaches builds a virtual representation of a product – called the digital twin or digital shadow.
Although, applied IT systems provide reliable feedback data of the processes on the shop-floor, they lack on a data structure which represents real-time data series of a product. This paper presents an approach for a data structure for the order processing which overcomes the described issue and provides a virtual representation of a product. Based on the data structure deviations between the production schedule and the real situation on the shop-floor can be identified in real time and measures to reschedule operations can be identified.
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.
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.
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.
In this paper, an approach towards energy management 4.0 will be presented. Energy management 4.0 is understood as an encompassing energy data based concept for manufacturing companies acting in an flexible energy grid of the future with the final goal of autonomous self-optimization Controlling, supervising and scheduling production and logistic steps based on a reliable communication infrastructure and real time data in accordance to achieve a maximum of profitability with regard to human factor is executed.
Guided by a four maturity levels of the "acatech Industrie 4.0 Maturity Index" developed by the German National Academy of Science and Engineering (acatech) different use cases are presented according to the steps of visibility, transparency, prognostic capacity and self-optimization. The basic idea of energy management 4.0 is described and an outlook of further steps that are needed to be evaluated for an implementation are presented.
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.
Nowadays one of the most challenging tasks of producing companies is the growing complexity due to the globalization and digitalization. Especially in high wage countries, the ability to deliver fast and to a fixed date gets more and more important. To achieve this logistic target, it is necessary to optimize the Production Planning and Control (hereinafter PPC). This study investigates the effects of a change of the scheduling parameters on a target system. The focused research questions are: How can the effect of a scheduling parametersvariation on the target system of the PPC can be displayed efficiently? Is it possible to review the effect of the scheduling parameters-variation quantitatively and to derive action options?
The topics Internet of Things and Industry 4.0 increasingly lead to the fact that the customer is increasingly focused on manufacturing companies. He wants to know delivery date of the product, wants to make changes at short notice, get an individualized product and much more. Technologically, these requirements have already been met, but the structures within the company as well as the operational processes are not yet or only partially prepared to cope with the increasing complexity and dynamics of production. This leads to many deviations with which the production controller must deal, whether they are complex or trivial.
In order to counteract the increasing number and frequency of deviation situations which are currently encountered with complex manual interventions, it is necessary to systematically evaluate deviations and then to allocate them a dominant reaction strategy (manual, partially automated, automated) from which a suitable reaction measure can be derived. This relieves the production controller, since assistance systems partially eliminate deviations independently.
As a result, the production controller gets more time to deal with the cause of deviations so that a new occurrence of deviations can be avoided and the number of deviations can be reduced sustainably. The following paper provides a solution for the assessment of deviations. In addition, it includes differentiation logic to allocate one of the three different reaction strategies to the identified deviation.
Production in high-wage countries can be made more efficient, cost-effective, and flexible by solving the conflict between planning and value orientation. A promising approach is to focus on planning and decision-making processes (production planning and control, design of production processes and machinery, etc.) and to aim to maximize overall planning efficiency. Planning efficiency can be expressed as the ratio between the benefit generated by preparing detailed process instructions to produce the parts or components and the corresponding planning efforts. Industrial companies wanting to gain a competitive advantage in dynamic global markets have to identify a set of non-dominated solutions with the most favorable effort–benefit ratio rather than a single solution. The optimum between detailed planning and the immediate implementation of value-adding activities (process steps) in the process chain needs to be found dynamically for each product.