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Institute
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.
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.
Due to the drastically increasing amount of data, decision making in companies heavily relies on having the right data available. Also because of an increasing complexity of structures and processes, quick and precise flows of information become more important.
This paper introduces a new approach for modelling information flows, creating a basis for an efficient information management. It can be used to structure the information requirements and identify gaps within the information processing.
To display its benefits, the proposed Information Logistics Notation (ILN) is applied to the information logistics of todays and future energy market and grid stability management, both processes of increasing complexity.
The manufacturing industry has to exploit trends like “Industrie 4.0” and digitization not only to design production more efficiently, but also to create and develop new and innovative business models. New business models ensure that even SMEs are able to open up new markets and canvass new customers. This means that in order to stay competitive, SMEs must transform their existing business models.
The creation of new business models require smart products. The required data base for new business models cannot be provided by SMEs alone, whereas smart products are able to provide a foundation, given the creation of smart data and smart services they enable. These services then expand functions and functionality of smart products and define new business models.
However, the development of smart products by small and medium-sized enterprises is still lined with obstacles. Regarding the product development process the inclusion of smart products means that new and SME-unknown domains diffuse during the process. Although there are many models regarding this process there appears to be a substantial lack of taking into account the competencies enabled by the implementation of digital technologies. Hence, several SME-supporting approaches fail to address the two major challenges these enterprises are faced with. This paper generally describes valid objectives containing relevant stakeholders and their allocation to the phases of the product life cycle.
Within each objective the potential benefit for customers and producers is analyzed. The model given in this paper helps SMEs in defining the initiation of a product development project more precisely and hence also eases project scoping and targeting for the smartification of an already existing product.
Nowadays, cyber physical systems support the improvement of efficiency in intralogistics by controlling and manipulating the production and logistic environment autonomously. Due to the complexity of the individual production processes, designing suitable cyber-physical systems based on their existing production environment is a challenge for companies.
This paper presents a new methodology on how to design cyber-physical systems conceptually to suit an individual production environment. Compared to existing design approaches, this methodology matches immediately the required functions to existing information and communication technology’s components insisting on the neutral assimilation of requirements.
Therefore, the requirement specification asks for needed functions in relating to offered functions of information and communication technology (ICT) components. The paper focusses the use case of implementing a cutting-edge mobile network technology into an existing tracking and tracing process.
Real-time data analytics methods are key elements to overcome the currently rigid planning and improve manufacturing processes by analysing historical data, detecting patterns and deriving measures to counteract the issues.
The key element to improve, assist and optimize the process flow builds a virtual representation of a product on the shop-floor - called the digital twin or digital shadow. Using the collected data requires a high data quality, therefore measures to verify the correctness of the data are needed. Based on the described issues the paper presents a real-time reference architecture for the order processing.
This reference architecture consists of different layers and integrates real-time data from different sources as well as measures to improve the data quality. Based on this reference architecture, deviations between plan data and feedback data can be measured in real-time and countermeasures to reschedule operations can be applied.
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.
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.
In order to introduce load management in the manufacturing industry, some obstacles need to be pointed out. This paper presents a feasible approach on how to implement load management measures in companies. To do so, load management and energy management are explained and distinguished in a first step. Subsequently, the implementation method is introduced. Therefore, by using this paper, companies will be enabled to use load management measure and reduce their energy costs significantly.
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.
Manufacturing companies are constantly increasing their efforts in the subscription business, also known as product-as-a-service business, offering usage and outcome based solutions (value-in-use) instead of transactional services and products (value-in-exchange). Customers are becoming contractual subscribers of the solution in return for recurring, performance-related payments. To address arising, inevitable challenges like (1) reducing customer churn, (2) increasing usage intensity and outcome quality, (3) ensuring the adoption of product and software releases as well as (4) fostering customer loyalty, leading manufacturing companies are setting up a new organizational, customer-facing unit, called Customer Success Management (CSM). This unit has its origins in the software-as-a-service business, operating next to established entities like sales, key account management and customer service. Since there are currently no holistic models for an end-to-end description of CSM-tasks in the manufacturing industry, this paper contributes to a taskoriented reference model, using a grounded theory approach, examining both manufacturing and software companies. Containing a reference framework with 8 main tasks, 17 basic tasks and 76 elementary tasks, the reference model supports manufacturing companies in adapting and customizing a company-specific CSM concept.
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.
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.
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.
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.
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.
Management of information and the IT systems it is stored in becomes a crucial capability for the industry. However, companies are struggling with the management of the various requirements and frequent changes of technology. Thus, IT complexity has become a major challenge for companies. At the same time, especially manufacturing companies are striving to implement Industrie 4.0 concepts. Many of these even have developed an Industrie 4.0 roadmap including various projects to change the company. Companies can develop such roadmaps by applying the Industrie 4.0 Maturity Index that gives a broad view on necessary capabilities for Industrie 4.0.
In our research, we analyzed data sets from over 10 manufacturing companies that have performed an Industrie 4.0 maturity assessment. Our hypothesis was that IT complexity challenges are hindering the implementation of Industrie 4.0 roadmaps significantly. We could prove this hypothesis at least for the companies analyzed and give insights on the specific challenges. Based on our analysis, we conclude our article by giving concrete recommendations on how to tackle IT complexity.
Working capital management is one of the key disciplines that must be prudently monitored for a firm in pursuit of profits, liquidity and growth. The focus of this paper is on the engineer-to-order manufacturers, and the objective is to analyze the correlations between the reference processes of the engineer-to-order production approach with the key postulates of working-capital management and deliver a mathematical operating curves model, whose purpose and goal is basing on the rationale, that is underlying in the parent logistic operating curves theory. [https://link.springer.com/chapter/10.1007/978-3-319-66926-7_30]
Human behavior in supply chains is insufficiently explored. Wrong decisions by decision makers leads to insufficient behavior and lower performance not only for the decision maker, but also for other stakeholders along the supply chain. In order to study the complex decision situation, we developed a supply chain game in which we studied experimentally the decisions of different stakeholder within the chain. 121 participants took part in a web-based supply chain game. We investigated the effects of gender, personality and technical competency on the performance within the supply chain. Also, learnability and the effect of presence of point-of-sale data are investigated. Performance depended on the position within the chain and fluctuating stock levels were observed in form of the bullwhip effect. Furthermore, we found that risk taking had an impact on the performance and that the performance improved after the first round of the game. [https://link.springer.com/chapter/10.1007/978-3-642-39226-9_46]
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.
The main challenge in all application areas of EV usage still is the energy storage within, as well as the energy transmission into an EV. However, this storage and transmission of energy also allows for synergies with a smart grid, if the information is adequately exchanged between roles in the energy and mobility sector. Since the energy transmission is a so called “fixed and intersection point” of E-Mobility, interoperability is required not only on an electrical (e.g. plugs), but also on an informational level. Standardization efforts are currently underway (e.g. IEC 15118), yet a comprehensive, consolidating view on the information system around energy transmission is missing. Therefore, this paper suggests a generic information system architecture for e-mobility (EM-ISA) derived from the Smart Grid Architecture Model (SGAM). EM-ISA shall be a base for companies to develop innovative services for their particular, ICT-enabled E-Mobility application area while at the same time stay at important points informational interoperable at the fixed and intersection point of energy transmission.
Aufgrund kürzer werdender Produktzyklen und steigender Produktvielfalt werden produzierende Unternehmen mit einer zunehmenden Anzahl von Produktanläufen konfrontiert. Ziel aktueller Forschungsaktivitäten ist es daher, anlaufintensive Unternehmen zu befähigen, verlässliche Produktionsprogramme in kurzer Zeit zu erstellen. Lerneffekte sollen genutzt werden können ohne Diversifikationseffekte zu vernachlässigen. Zur Erreichung dieser Zielsetzung wird ein Modell für eine kybernetische PPP bei Produktanläufen entwickelt.
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.
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.
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.
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]
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.
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.
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.
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.
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.
For a considerable time, European companies in the capital goods industry experience stagnating growth in material goods markets. Moreover, increasing international competition forces European companies to improve their market position. In order to stay successful, an increasing number of companies adapt their businesses from manufacturing to service provider. Unfortunately, the number of companies who manage to turn their portfolio change into a competitive advantage is comparatively low. Therefore, this paper focuses on the development of a framework for the positioning as industrial services provider. Besides, it provides support for management in shaping the changes that occur with the transformation.
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.
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.
Companies in the manufacturing sector are confronted with an increasingly dynamic environment. Thus, corporate processes and, consequently, the supporting IT landscape must change. This need is not yet fully met in the development of information systems. While best-of-breed approaches are available, monolithic systems that no longer meet the manufacturing industry's requirements are still prevalent in practical use. A modular structure of IT landscapes could combine the advantages of individual and standard information systems and meet the need for adaptability. At present, however, there is no established standard for the modular design of IT landscapes in the field of manufacturing companies' information systems. This paper presents different ways of the modular design of IT landscapes and information systems and analyzes their objects of modularization. For this purpose, a systematic literature research is carried out in the subject area of software and modularization. Starting from the V-model as a reference model, a framework for different levels of modularization was developed by identifying that most scientific approaches carry out modularization at the data structure-based and source code-based levels. Only a few sources address the consideration of modularization at the level of the software environment-based and software function-based level. In particular, no domain-specific application of these levels of modularization, e.g., for manufacturing, was identified. (Literature base: https://epub.fir.de/frontdoor/index/index/docId/2704)
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.
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.
Gap Analysis for CO2 Accounting Tool by Integrating Enterprise Resource Planning System Information
(2023)
Detailed carbon accounting is the foundation for reducing CO2 emissions in manufacturing companies. However, existing accounting approaches are primarily based on manual data preparation, although manufacturing companies already have a variety of IT systems and resulting data available. The gap analysis carried out based on the GHG Protocol and an reference ERP system shows how much of the required information for CO2 accounting can be integrated from an ERP system. The ERP system can cover 20 % of the required information. The information availability can be increased to 49 % through additionally identified modifications of the ERP system. Integrating the CO2 accounting tool with other systems of the IT landscape, e. g. Energy Information System, enables an additional increase.
Manufacturing companies face the challenge of managing vast amounts of unstructured data generated by various sources such as social media, customer feedback, product reviews, and supplier data. Text-mining technology, a branch of data mining and natural language processing, provides a solution to extract valuable insights from unstructured data, enabling manufacturing companies to make informed decisions and improve their processes. Despite the potential benefits of text mining technology, many manufacturing companies struggle to implement use cases due to various reasons. Therefore, the project VoBAKI (IGF-Project No.: 22009 N) aims to enable manufacturing companies to identify and implement text mining use cases in their processes and decision-making processes. The paper presents an analysis of text mining use cases in manufacturing companies using Mayring's content analysis and case study research. The study aims to explore how text mining technology can be effectively used in improving production processes and decision-making in manufacturing companies.
With the development of publicly accessible broker systems within the last decade, the complexity of data-driven ecosystems is expected to become manageable for self-managed digitalisation. Having identified event-driven IT-architectures as a suitable solution for the architectural requirements of Industry 4.0, the producing industry is now offered a relevant alternative to prominent third-party ecosystems. Although the technical components are readily available, the realisation of an event-driven IT-architecture in production is often hindered by a lack of reference projects, and hence uncertainty about its success and risks. The research institute FIR and IT-expert synyx are thus developing an event-driven IT-architecture in the Center Smart Logistics' producing factory, which is designed to be a multi-agent testbed for members of the cluster. With the experience gained in industrial projects, a target IT-architecture was conceptualised that proposes a solution for a self-managed data-ecosystem based on open-source technologies. With the iterative integration of factory-relevant Industry 4.0 use cases, the target is continuously realised and validated. The paper presents the developed solution for a self-managed event-driven IT-architecture and presents the implications of the decisions made. Furthermore, the progress of two use cases, namely an IT-OT-integration and a smart product demonstrator for the research project BlueSAM, are presented to highlight the iterative technical implementability and merits, enabled by the architecture.
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.
Based on the increasingly complex value creation networks, more and more event-based systems are being used for decision support. One example of a category of event-based systems is supply chain event management. The aim is to enable the best possible reaction to critical exceptional events based on event data. The central element is the event, which represents the information basis for mapping and matching the process flows in the event-based systems. However, since the data quality is insufficient in numerous application cases and the identification of incorrect data in supply chain event management is considered in the literature, this paper deals with the theoretical derivation of the necessary data attributes for the identification of incorrect event data. In particular, the types of errors that require complex identification strategies are considered. Accordingly, the relevant existing error types of event data are specified in subtypes in this paper. Subsequently, the necessary information requirements and information available regarding identification are considered using a GAP analysis. Based on this gap, the necessary data attributes can then be derived. Finally, an approach is presented that enables the generation of the complete data set. This serves as a basis for the recognition and filtering out of erroneous events in contrast to standard and exception events.
The complexity and volatility of companies’ environment increase the relevance of disruption preparation. Resilience enables companies to deal with disruptions, reduce their impact and ensure competitiveness. Especially in the context of procurement, disruptions can cause major challenges while resilience contributes to ensuring material availability. Even though past disruptions have posed various challenges and companies have recognized the need to increase resilience, resilience is often not designed systematically. One major challenge is the number of potential measures to increase resilience. The systematic design of resilience thus requires a detailed understanding of domain-specific measures. This also includes an understanding of the contribution of these measures to different resilience components and their interdependencies. This paper proposes a systematic approach for configuring resilience in procurement which enables the evaluation and selection of resilience measures. Based on a resilience framework, a resilience configurator is developed. The basis of the configurator are resilience potentials that have been characterized and clustered. Overarching approaches to design resilience and indicators to evaluate resilience are presented. Moreover, a procedure is proposed to ensure practical applicability. To evaluate the results two case studies are conducted. The results enable companies to systematically design their resilience in procurement.
Technologiebasierte Leistungssysteme versetzen den Werkzeugbau am Hochlohnstandort Deutschland in Zukunft in die Lage, nachhaltige Wettbewerbsvorteile zu generieren. Dazu ist es allerdings erforderlich, nicht nur die Technologiebasis in Form von Transponder- und Sensortechnik in das Werkzeug zu integrieren, vielmehr ist es nötig, entsprechende neue Geschäftsmodelle für diese Leistungssysteme zu entwickeln. Außerdem ist sicherzustellen, dass die Geschäftsmodelle auf operativer Ebene auch mit der Technologie harmonieren und die gewonnenen Daten entsprechend in die Auftragsabwicklungsprozesse integriert werden. Der vorliegende Beitrag stellt potenzielle neue Geschäftsmodelle für den Werkzeugbau vor und skizziert einen Ansatz zur operativen Integration der benötigten Informationen in die Geschäftsprozesse.
Der vorliegende Beitrag baut auf den Arbeiten eines Forschungsprojekts auf. Das Forschungsprojekt 'TecPro - Geschäftsmodelle für technologieunterstützte, produktionsnahe Dienstleistungen des Werkzeug- und Formenbaus' wird mit Mitteln des Bundesministeriums für Bildung und Forschung (BMBF) innerhalb des Rahmenkonzepts "Forschung für die Produktion von morgen" (Förderkennzeichen 02PG1095) gefördert und vom Projektträger Forschungszentrum Karlsruhe, Bereich Produktion und Fertigungstechnologien (PTKA-PFT), betreut.
In diesem Beitrag werden die aktuellen Aktivitäten im Forschungsprojekt „SiZu – Integration von Echtzeitsimulation und Zustandsüberwachung zur Bauteilprognose und Fehleranalyse für die Instandhaltung“ vorgestellt. Ziel des Projektes ist es, die bislang separat genutzten Funktionalitäten Condition-Monitoring und Echtzeitsimulationen in einem Analysewerkzeug (Condition- Analyser) für die Instandhaltung zusammenzuführen und damit Zustandsüberwachungssysteme um die Möglichkeit der Nutzung historischer Anlagendaten und Echtzeitsimulation zu erweitern. Neben der detaillierten Beschreibung der angestrebten Forschungsergebnisse und den daraus resultierenden Nutzungspotentialen für die Instandhaltung wird die zur Zielerreichung entwickelte Vorgehensweise vorgestellt und diskutiert.
In diesem Beitrag werden die Ergebnisse aus einer Studie in der Papierindustrie vorgestellt. Dabei zeigt sich eine deutliche Korrelation zwischen guten Ergebnissen in der Effektivität und Effizienz des Zuverlässigkeitsmanagements und dem Unternehmenserfolg. Der Unternehmenserfolg – im Sinne einer hohen Umsatzrendite – kann zwar nicht allein auf einen entscheidenden Einflussfaktor zurückgeführt werden, da der Umsatz durch eine Vielzahl von Faktoren bestimmt wird. Die durchgeführten Analysen und Interviews innerhalb der Studie deuten allerdings darauf hin, dass in der Tat das operative Anlagenmanagement einen maßgeblichen Erfolgsfaktor darstellt, sich „Reliability“ in der Prozessindustrie folglich auszahlt. Überdies konnte gezeigt werden, wie sich Methoden und Verhaltensweisen von Instandhaltung und Produktion auf die Zuverlässigkeit von Anlagen und die Effizienz deren Bewirtschaftung auswirken.
One of the major tasks of operations managers is to boost uptime while simultaneously keeping budget. To meet this challenge they discover reliability-based management as strategic factor to improve performance. But which parameters are the key to “reliability excellence” and drive a company’s performance? What are the relevant levers to pull in reliability-based management?
To answer these questions McKinsey & Company partnered with Aachen University to launch a global reliability survey in process industries. Objective of the initiative is to provide a statistically proven picture of key factors that drive maintenance and reliability excellence. Furthermore benchmarks and best practices concerning overall operational performance will be identified. The study is based on a questionnaire-based approach which addresses all relevant departments within a company, complemented by best practice analyses.
This paper provides results of the survey. The results demonstrate that reliability pays off. Some unproven beliefs have been confirmed (e.g. a good reliability performance results in a low spare part inventory) but also surprises like a correlation between safety and performance were identified. The analysis also shows that structural differences like company size or geography do not influence reliability performance.
Holistic PLM- Model
(2010)
Product Lifecycle Management (PLM) is a widely discussed topic concerning the increase of efficiency of product development in terms of time to market as well as customizing products to the different needs of customers worldwide adequately. Historically PLM focuses the early phases of the product’s lifecycle, namely the product development phase. Therein the roots of PLM are based in supporting the information logistics of product data: Consistent data sets should be available to all stakeholders in the different departments at all times. Due to the increasing product complexity PLM has to be extended in terms of the temporal dimension (not limited to product development phase) and systemic dimension (not limited to the information logistic aspect). In this paper the authors derive a holistic framework for Product Lifecycle Management by analysing existing integrated management approaches. The framework consists of four dimensions: PLM strategy, PLM process, Product structure and PLM IT-Architecture. The sustainability and benefits of the framework is demonstrated by applying the framework to the communication service provider industry (CSP).
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.
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.
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.
Rebound Logistics
(2009)
Today, the flow of product returns is becoming a significant concern for many manufacturing companies. In this research area, three fundamental aspects of product returns need to be taken into consideration: First, companies become increasingly aware of the fact that product returns may offer an opportunity for enormous profit generation and for improving the competitive advantage of a manufacturing company when taking into account the accretive value of the products and technology. Second, the impact of green laws, legislative provisions and the increasing impact of a sustainable production management due to marketing aspects force companies to design and manage the reverse supply chain actively. Third, the importance of managing the reverse supply chains effectively will be enforced by the currently volatile economic climate. This paper outlines first results of designing a methodological framework for implementing an integrative reverse supply chain for manufacturing companies based on a type-specific Reverse Supply Chain Reference Model.
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.
Due to shorter product life cycles the number of production ramp-ups is increasing, while customers have a soaring demand for more variable and individualized products. In the future, optimizing the production ramp-up will become an important differentiation criterion for companies. Considering the whole supply chain in the ramp-up process becomes therefore indispensable. This is what the presented research in this paper concentrates on. The intention of the research project is to develop a model of a supply chain in the production ramp-up stage. Through this model, approaches for optimizing the production ramp-up in the whole supply chain will be derived.
Further the research project concentrates on measuring the production ramp-up performance in the supply chain, showing the impact on economic and financial measures. The result of this research is an approach to align the tasks and objectives of Supply Chain Management with the tasks and objectives of ramp-up management in order to optimize the whole supply chain in the ramp-up stage.
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.
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.
In most European countries a structural change from a production dominated towards a service oriented society is progressing. Companies increasingly consider services as means to gain competitive advantages in a global competition. In order to provide holistic, value-adding solutions while simultaneously guaranteeing high quality standards, production companies increasingly join forces with external services‘ providers. Models, methods and tools for service development are rare and in most cases immature. In the context of virtual services‘ development this leads to a dual set of simultaneous chal-lenges: an alignment of systematic services‘ and product development and the coordination of distributed R&D partners. The objective is to provide a meta-process that identifies all steps and decision points necessary to successfully develop innovative services. It is a result of combined service development and virtual enterprises‘/ networks‘ research.
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.
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.
The adoption of artificial intelligence (AI) technologies in manufacturing companies is challenging, particularly for SMEs that lack the necessary skills to develop and integrate AI-based applications (AI applications) into their existing IT system landscape. To address this challenge, the research project VoBAKI (IGF-Project No.: 22009 N) aims to enable SMEs to identify and close skill gaps related to AI application development and implementation using proper sourcing strategies. This paper presents the interim results from the second phase of the project, which involves identifying the tasks in the lifecycle of AI applications and determining the specific skills required for executing these tasks. The presented results provide a detailed lifecycle including the phases for the development and usage of AI applications, as well as the specific tasks that SMEs must consider when implementing an AI application. These results serve as the foundation for future research regarding the required skills to execute the presented tasks and provide a roadmap for SMEs to close skill gaps and successfully implement AI applications.