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Influenced by the high dynamic of the markets the optimization of supply chains gains more importance. However, analyzing different procurement strategies and the influence of various production parameters is difficult to achieve in industrial practice. Therefore, simulations of supply chains are used in order to improve the production process. The objective of this research is to evaluate different procurement strategies in a four-stage supply chain. Besides, this research aims to identify main influencing factors on the supply chain’s performance. The performance of the supply chain is measured by means of back orders (backlog). A scenario analysis of different customer demands and a Design of Experiments analysis enhance the significance of the simulation results.
In Germany’s transition to a more sustainable industrial landscape, electricity generated by wind turbines (WT) remains a mainstay of the energy mix. Operating and maintenance costs, which account for roughly 25% of electricity generation costs in onshore WTs make improvements of maintenance activities a key lever in the economic operation of WTs. Prescriptive maintenance is a possible approach for improved maintenance activities. It is a concept where asset condition data is used to recommend specific actions and has great potential for the operation of wind parks. However, especially small, but also large wind park operators, and maintenance service providers often struggle with the implementation of such a new maintenance approach. As a part of the research project ReStroK, a learning game has been developed to support the training and familiarization of maintenance technicians with the concepts and underlying principles of this maintenance approach. In this paper, the concept for the development of a learning game will be presented. Multiple scenarios for its usage and their corresponding requirements will be discussed and an overview over the game will be given.
Manufacturing companies (MFRs) are increasingly extending their
portfolios with services and data-driven services (DDS) to differentiate themselves from competitors, tap new revenue potential, and gain competitive advantages through digitization and the subsequently generated data. Nonetheless, DDS fail more often than traditional industrial services and products within the first year on the market. Particularly, companies are failing to sell DDS successfully and efficiently with their existing (multi-level) distribution structures. Surprisingly, there is a lack of scientific research addressing this issue. Since there are currently no holistic models for an end-to-end description of distribution-tasks for DDS in the manufacturing industry, this paper contributes to a task-oriented reference model for mapping interactions in the multi-level distribution management. Therefore, a case study research approach is used, to identify and describe the interactions in the multi-level distribution management of DDS, as well as to develop a regulatory framework for MFRs and their multi-level distribution management. This research uses the established theoretical framework of Service-Dominant-Logic to address the co-creation in multi-level distribution management of DDS. As a result, this paper identifies different interaction variants as well as the need for a new management function with 4 main and 14 basic tasks.
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.
Understanding the Organizational Impact of Robotic Process Automation: A Socio-Technical Perspective
(2022)
Interest in AI-driven automation software is growing constantly across
all industries, as these technologies enable companies to almost automate administrative processes completely and significantly increase operational efficiency.
However, many implementation attempts fail due to a lack of understanding of how these technologies affect the various socio-technical aspects that are intertwined in an organisation. This leads to a widening gap between value propositions of automation software and the ability of companies to exploit them. For long-term
success, collaboration between humans and software robots in the organization must be optimised. Therefore, the social, technical, and organizational impact of Robotic Process Automation was investigated. Following a socio-technical systems approach, a model was developed and validated in a use case of a company in the mechanical engineering sector. Knowing the influencing factors before launching large-scale automation initiatives will help practitioners to better exploit
efficiency potentials and increase the long-term success.
Driven by different trends, such as digitalization, the number of companies aiming for successful business transformation is increasing, while new structures and systems are paving the way. Strategic agile management systems offer significant potential benefits given the increasing speed of the evolving environment in which organizations find themselves these days. To select and implement the appropriate strategic agile management system, companies need to understand the underlying theoretical principles to be able to select the most suitable for the respective company and to introduce it based on individual adaption. Within this paper, a morphology is presented to improve theoretical knowledge about strategic agile management systems. Creating a common understanding of strategic agile management systems and their current areas of application creates a suitable frame of reference for future research projects.
Augmented reality seems to offer great potential benefits in the field of industrial services. However, the question of the exact benefits, both monetary and qualitative, is difficult to evaluate, as is the case with IT investments in gen-eral. Within the framework of the DM4AR research project, an evaluation model was therefore developed. Based on group discussions and interviews on potential AR use cases, a list of monetary and qualitative benefits was compiled to form the basis for selecting suitable evaluation modules in the existing literature. These include an impact chain analysis in the form of a strategy map, a monetary eval-uation as a calculation of the return on investment, based on the assumptions of the use case as well as existing studies, and a qualitative evaluation in the form of a utility analysis. The outcome is an evaluation model in the form of a multi-perspective approach that considers the impact of AR in the four perspectives of the balanced scorecard (financial, customer, internal business processes, learning and growth). The results of the qualitative and monetary evaluation can be sum-marized in a 2D matrix to support decision-making.
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
Due to shorter product life cycles and the increasing internationalization of competition, companies are confronted with increasing complexity in supply chain management. Event-based systems are used to reduce this complexity and to support employees' decisions. Such event-based systems include tracking & tracing systems on the one hand and supply chain event management on the other. Tracking & tracing systems only have the functions of monitoring and reporting deviations, whereas supply chain event management systems also function as simulation, control, and measurement. The central element connecting these systems is the event. It forms the information basis for mapping and matching the process sequences in the event-based systems. The events received from the supply chain partner form the basis for all downstream steps and must, therefore, contain the correct data. Since the data quality is insufficient in numerous use cases and incorrect data in supply chain event management is not considered in the literature, this paper deals with the description and typification of incorrect event data. Based on a systematic literature review, typical sources of errors in the acquisition and transmission of event data are discussed. The results are then applied to event data so that a typification of incorrect event types is possible. The results help to significantly improve event-based systems for use in practice by preventing incorrect reactions through the detection of incorrect event data.
Companies operate in an increasingly volatile environment where different developments like shorter product lifecycles, the demand for customized products and globalization increase the complexity and interconnectivity in supply chains. Current events like Brexit, the COVID-19 pandemic or the blockade of the Suez canal have caused major disruptions in supply chains. This demonstrates that many companies are insufficiently prepared for disruptions. As disruptions in supply chains are expected to occur even more frequently in the future, the need for sufficient preparation increases. Increasing resilience provides one way of dealing with disruptions. Resilience can be understood as the ability of a system to cope with disruptions and to ensure the competitiveness of a company. In particular, it enables the preparation for unexpected disruptions. The level of resilience is thereby significantly influenced by actions initiated prior to a disruption. Although companies recognize the need to increase their resilience, it is not systematically implemented. One major challenge is the multidimensionality and complexity of the resilience construct. To systematically design resilience an understanding of the components of resilience is required. However, a common understanding of constituent parts of resilience is currently lacking. This paper, therefore, proposes a general framework for structuring resilience by decomposing the multidimensional concept into its individual components. The framework contributes to an understanding of the interrelationships between the individual components and identifies resilience principles as target directions for the design of resilience. It thus sets the basis for a qualitative assessment of resilience and enables the analysis of resilience-building measures in terms of their impact on resilience. Moreover, an approach for applying the framework to different contexts is presented and then used to detail the framework for the context of procurement.
Generation of a Data Model For Quotation Costing Of Make To Order Manufacturers From Case Studies
(2022)
For contract or make to order manufacturers, quotation costing is a complex process that is mainly performed based on experience. Due to the high diversity of the product range of these mostly small or medium-sized companies (SMEs) and the poor data situation at the time of quotation preparation, the quality of the calculation is subject to strong variations and uncertainties. The gap between the initial quotation costing and the actual costs to be spent (pre- and post-calculation) is crucial to the existence of SMEs. Digitalization in general can help companies to get a better understanding of processes and to generate data. For improving these processes, an understanding of the important data for that specific process is crucial. Accurate quotation costing for customized products is time-consuming and resource-intensive, as there is a lack of an overview of data to be used within the process. This paper therefore derives a data model for supporting quotation costing in the company, based on literature-based costing procedures and recorded case studies for quotation and calculation. Based on the results, SMEs will have a first overview of the needed data for quotation costing to optimize their calculation process.
The environment in which companies operate is increasingly volatile and complex. This results in an increased exposure to disruptions. Past disruptions have especially affected procurement. Thus, companies need to prepare for disruptions. The preparedness for disruptions in the context of procurement is significantly influenced by the design of the procurement strategy. However, a high number of purchased articles and a variety of influencing factors lead to high complexity in procurement. The systematic design of the procurement strategy should therefore take into account the criticality of the purchased articles. This enables to focus on the purchased articles that have a high impact on the disruption preparedness. Existing approaches regarding the design of the procurement strategy in uncertain environments either lack practical applicability and objective evaluation or focus on the criticality of raw materials rather than of purchased articles. Therefore, a data-based approach for the systematic design of the procurement strategy in the context of the Internet of Production has been proposed. One central aspect of this approach is the identification of success-critical purchased articles. Thus, this paper proposes a framework for characterizing purchased articles regarding supply risks by combining two systematic analyses. First, a systematic literature review is performed to answer the question of what factors can be used to describe the supply risks of purchased articles. The results are analyzed regarding sources and impacts of risks and thus contribute to a structured characterization of supply risks. Second, existing criticality assessment approaches for raw materials are analyzed to identify categories and indicators that describe purchased articles. The results of both reviews provide the basis for linking product characteristics with supply risks and assessing product criticality which will be integrated into an app prototype.
Technology management can significantly influence the strategic decisions of a company and thus cause success or failure. Basic templates for technology management are technology radars as well as the determination of the technology readiness level (TRL) to be able to evaluate the maturity of newly deployed technologies (e.g., newcomer vs. established). The radars, as well as the TRL, are identified in time-consuming, manual research by subject matter experts from external consultancies. This process is often repeated due to the further development and new development of technologies so that the necessary research becomes an ongoing task. The TechRad research project, therefore, aims to automate the identification of the TRL as well as technology radars using web crawling and Natural Language Processing (NLP). To commercialize the pre-competitive prototype, the development of a pre-competitive business model is the goal of this paper. Based on customer analyses, a target group definition is created. Based on user interviews, the precompetitive business model will be detailed in a four-step approach using a business model canvas and a value proposition canvas.
While digitization is a strategic advantage in numerous industries such as the automotive industry or mechanical engineering, other industries like the German quarrying industry have not yet established a transformation towards a digitized industry. This leads to inefficient work and inaccurate forecasting capabilities. To address these challenges, digital platforms can incentivize digitization
by supporting the capacity utilization and forecasting capability of these companies. In this paper, the quarrying industry is analyzed by a morphology and different types of companies are identified. Knowing the digital maturity of these companies and by determining the key factors to forecast demands and the capacity utilization, different operating models are derived. Combined with a morphology and the value creation system, different scenarios for the identification of platform services are examined. These scenarios are weighted in a utility analysis to get an operating model blueprint to develop and establish digital platforms in less digitized industries.
The successful use of Business Analytics is increasingly becoming a differentiating competitive factor. The ability to extract data-driven insights and integrate them into decision-making is becoming growingly important. The underlying technologies are evolving exponentially, the value proposition differs from simple descriptive applications to automated decision-making. Existing approaches found in literature and practice to classify those levels only insufficiently mark down the boundaries between the different technology levels. As a consequence, it is often unclear which characteristics of the technology interact with the working environment, which can be described as a socio-technical system. Using a systematic literature review, this paper identifies the characteristics of Business Analytics and delineates three types of Business Analytics based on case studies. Thus, a starting point for the socio-technical system design and optimization for the use of Business Analytics is created.
The manufacturing industry consumes 54% of global energy and attributes for 20% of global CO2 emissions, demonstrating the industry’s role as global driver of climate change. Therefore, reducing its carbon footprint has become a major challenge as its current energy and resource consumption are not sustainable. Industrie 4.0 presents a chance to transform the prevailing paradigms of industrial value creation and advance sustainable developments. By using information and communication technologies for the intelligent networking of machines and processes, it has the potential to reduce energy and material consumption and is considered a key contributor to sustainable manufacturing as proclaimed by the European Commission in the term “twin transition”. As organizations still struggle to utilize the potential of Industrie 4.0 for a sustainable transformation, this paper presents a framework to successfully align their own twin transition. The framework is built upon three key design principles (micro level: leverage eco-efficient operations, meso level: facilitate circularity and macro level: foster value co-creation) derived using case study research by Eisenhardt, and four structural dimensions (resources, information systems, organizational structure and culture) based on the acatech Industrie 4.0 Maturity Index. Eleven interconnected areas of action are defined within the framework and offer a holistic and practical approach on how to leverage an organization’s twin transition. Within the conducted research, the framework was applied to the challenge of information quality and transparency required for high-value secondary plastics in the manufacturing industry. The result is a digital platform design that enables information transactions for secondary plastics and establishes a circular ecosystem. This shows the applicability of the framework and its potential to facilitate a structured approach for designing twin transitions in the manufacturing industry.
The quarrying industry, which largely consists of less digitized SMEs, is an integral part of the German economy. More than 95% of the primary raw materials produced are used by the domestic construction industry. Quarrying companies operate demand-oriented with short planning horizons at several locations simultaneously. Due to the low level of digitization and the reluctance to share data, untapped efficiency potential in data-based demand forecasting and capacity planning arises. The situation is aggravated by the fact that SMEs have a heterogeneous mobile machinery so as not to become dependent on individual suppliers, and that transport distances of over 50 kilometers are uneconomical due to high transport costs and low material values. Within the research project PROmining a data-centric platform which improves demand forecast accuracy and multi-site capacity utilization is developed. One of the core functionalities of this platform is an industry-specific demand forecasting model. Against this background, this paper presents a methodology for establishing this forecasting model. To this end, expected demands of secondary industry sectors will be analyzed to improve mid-term volume-forecasting accuracy for the local quarrying industry. The data-centric platform will connect demand forecasting data with relevant key performance indicators of multi-site asset utilization. Following this methodology, operational planning horizons can be extended while significantly improving overall production efficiency. Thus, quarrying businesses are enabled to respond to fluctuating demand volumes effectively and can increase their personnel and machine utilization across multiple quarry sites.
Digitization is constantly affecting the working world and is of enormous interest in many fields of science. But to what extent are innovative technologies actually being applied in regional SMEs and what are the obstacles to their introduction? From a psychological point of view, it is essential to consider the employee's health and the effects of innovative technologies on their everyday work. The aim of using innovative technologies should not be to completely replace human labor or to dequalify employees, but to relieve the workforce and free up working time for more meaningful activities. One concept that should be included in the human-centered design of human-machine interaction in artificial intelligence is the HAI-MMI concept (Huchler, 2020), which offers starting points for high-quality collaboration at various levels. To reduce the gap between science and industry, this paper focuses on the actual demands of SME in the Aachen region in Germany referring to a requirements analysis within the research project AKzentE4.0 (N = 50 SME) and discusses how appropriate innovative technologies of the Industry 4.0 and AI can be implemented and deployed in a human-centred way. Moreover, the establishment of a Human Factors Competence Center for Employment in Industry 4.0 is outlined, which is meant to be used for the dissemination of research results from the project and should narrow the gap between science and industry in the long run.
5G offers the manufacturing industry a wireless, fast and secure transmission technology with high range, low latency and the ability to connect a large number of devices. Existing transmission technologies are reaching their limits due to the increasing number of networked devices and high demands on reliability, data volume, security and latency. 5G fulfills these requirements and also combines the potential and use cases of previous transmission technologies so that unwanted isolated solutions can be merged. Use cases of transmission technologies that previously required a multitude of solutions can now be realized with a single technology. However, the general literature often refers to 5G use cases that can also be realized over cables in particular. In this paper, a literature review presents the current state of research on the various 5G application scenarios in production . Furthermore, concrete characteristics of 5G use cases are identified and assigned to the identified application scenarios. The goal is to verify the identified 5G use cases and to work out their 5G relevance in order to be able to concretely differentiate them from already existing Industrie 4.0 applications.
The shop floor is a dynamic environment, where deviations to the production plan frequently occur. While there are many tools to support production planning, production control is left unsupported in handling disruptions. The production controller evaluates the deviations and selects the most suitable countermeasures based on his experience. The transparency should be increased in order to improve the decision quality of the production controller by providing meaningful information during his decision process. In this paper, we propose a framework in which an interactive production control system supports the controller in the identification of and reaction to disturbances on the shop floor. At the same time, the system is being improved and updated by the domain knowledge of the controller. The reference architecture consists of three main parts. The first part is the process mining platform, the second part is the machine learning subsystem that consists of a part for the classification of the disturbances and one part for recommending countermeasures to identified disturbances. The third part is the interactive user interface. Integrating the user’s feedback will enable an adaptation to the constantly changing constraints of production control. As an outlook for a technical realization, the design of the user interface and the way of interaction is presented. For the evaluation of our framework, we will use simulated event data of a sample production line. The implementation and test should result in higher production performance by reducing the downtime of the production and increase in its productivity.