Børge Sjøbakk

A Strategic Approach for Automation Technology Initiatives Selection

Despite the rapid development of new manufacturing technologies, a large portion of adoptions fail to achieve expected benefits. Existing models for technology selection are criticized for requiring large computations, and for being time consuming and difficult to use. This paper presents a strategic approach to support decision-makers in automation technology selection that is efficient and easy to apply in practice. It involves technology strategy decisions, process and technology analyses, technology/process ranking and considerations on investment and implementation. The approach has been developed through literature reviews and close collaboration with two case companies, utilizing the action research method. Its use is illustrated in an ongoing automation project at a world leading supplier of plastic pipes systems.

Tracking customer behaviour in fashion retail using RFID

The purpose of this paper is to explore how tracking of products by the use of radio frequency identification (RFID) technology may describe customer behaviour in real-time.,The study was conducted as a field experiment, where a commercially available RFID platform was deployed in the fitting rooms of a fashion retail store.,The study demonstrates an application of in-store RFID tracking to describe customer behaviour, and some practical challenges of utilising such technology. An example typology of four fitting room traits was constructed based on the data collected.,Different customer types most likely require and respond differently to attention from the personnel operating the fitting room area. By identifying customer behaviour in real-time, it is possible to deliver “best practice” shop stewardship and create a more personalised retail experience.,The study is based on real-life retail settings, rather than anecdotal management observations or economic and demographic indicators. To the best of the authors’ knowledge, few contributions combine RFID and consumer behaviour outside conceptual work or laboratory experiments.

Proposing a Standard Template for Construction Site Layout: A Case Study of a Norwegian Contractor

Having an efficient construction site layout can significantly impact the productivity, cost and safety of a construction project. Construction site layout planning is therefore recognized as a critical step in construction planning by researchers. In literature this is often described as an optimization process where some objectives (e.g. safety, cost savings) are pursued within the constraints of the site and facilities requirements. Such models are usually complex and difficult for practitioners to apply, and usually result in each project having its unique site layout plan. The authors challenge this by proposing a standard layout template that can easily be utilized in planning of multiple construction sites. It is argued that each site should be treated as a factory and that similarity between sites should be pursued due to the nature of the construction industry. The template has been developed in collaboration with a Norwegian contractor, utilizing the action research approach.

A Collaborative Planning, Information and Decision Support System

In this paper, we discuss the importance of collaborative planning for manufacturing enterprises. We have analysed user stories provided by industry to understand the collaborative processes in their workplaces and their needs for Information Systems (IS) support. Based on the analysis of the user stories, we have proposed a framework for collaborative planning and ideas for the design of IS supporting this activity. These will be used to conduct focussed interviews with the users to refine our design before implementing the system.

What to Offshore, What to Produce at Home? A Methodology

Ever-increasing cost pressure and global competition has forced many Western manufacturing companies to offshore some or all of their production; i.e. to establish a manufacturing operation/facility in a low-cost country that replaces a facility in the country of origin. Literature concludes, however, that businesses do not make offshoring decisions in a systematic manner. This emphasizes the need for models, methodologies and tools supporting companies in making sound offshoring decisions. This paper proposes such a methodology for one of the crucial questions many offshoring companies face: For which products should production be offshored, for which should it be kept back? The proposed methodology consists of five steps: (1) Identify constants and variables (scoping); (2) Determine and characterize product groups; (3) Perform a strategic (qualitative) analysis; (4) Perform a financial (quantitative) analysis; and (5) Take a decision. The paper briefly describes each step, with a focus on the first three steps.

The Strategic Landscape of Industry 4.0

We are currently on the marks of Industry 4.0. Characterized by increased digitalization and automation, it is expected to overturn traditional business models and supply chains. Industry 4.0 initiatives have already made significant impact on industry, and will continue to do so in the years to come. While the concept of Industry 4.0 gains a foothold, there is no clear idea of how it should be addressed by companies. The transformation is without a doubt a strategic imperative that requires long-term commitment. Instead of investing in new technologies in an ad hoc manner, companies need to adopt a systematic approach to address technological opportunities throughout the supply chain. There exist many different and, in some cases, conflicting opinions about the scope of such an approach, what it should contain, its point of departure, etc. This paper synthesizes such views into a framework that depicts the strategic landscape manufacturing companies are facing at the outset of their digital journey. The framework can be used to position and discuss companies’ digitalization and automation initiatives with respect to business-, manufacturing-, supply chain-, and digital strategy.

Front-End/Back-End Integration in Mass Customization: Challenges and Opportunities

Many mass customization challenges can be ascribed to insufficient integration of front-end (e.g., customer choice navigation processes, product configuration, user interfaces, and customer behavior patterns) and back-end (e.g., order management, purchasing and production planning and control) systems. To succeed as a mass customizer, customer/manufacturer integration is critical. This paper provides in-depth insights to integration challenges and opportunities based upon a case study of four manufacturing companies. For solution space and product development, high uncertainty in new idea generation, lack of systematic product and solution space development, and limited knowledge of what is the “right” solution space are identified as challenges with opportunities for improvement. Regarding choice navigation, many companies have limited direct contact with end customers due to sales through dealers and resellers. Associated inefficient information flows are another challenge. The companies acknowledge opportunities related to advisory support during the sales process, as well as enhanced external collaboration with, e.g., complementary actors. With respect to back-end systems, inefficient information flows also occur here. This, in combination with a large number of freestanding ICT systems, results in cumbersome production planning and execution. This is complicated even more by incorrect basic data. Finally, there are major opportunities in automatic visualization and efficient utilization of key information from the entire value chain. In addition to outlining several directions for further research, the paper provides in-depth, company-based insights to key integration development areas, which managers may use when developing their own mass customization practices.

The Importance of Choice Navigation in Starting Configurator Projects

Choice navigation can support customers in identifying their own solutions while minimizing complexity and the burden of choice. Product configurators are used as an interactive tool to help customers in this process. For companies aiming to develop a configurator from scratch, there are many hurdles. Particularly for SMEs, there are additional challenges, such as shortage of resources, experience, and knowledge in developing a viable configurator tool. In this paper, we explore the process of designing choice navigation through a product configurator tool. We review existing methodologies and propose a new process model. Empirical data come from a case study of three SMEs embarking on the process of establishing a choice navigation tool. The proposed model is developed in the context of the research project CustomR. The new process model is cyclic and customer-driven and aims to develop need-based configurators (as opposed to a linear, technology-driven, and function-based approach). The paper reports on challenges and success factors from an ongoing configurator development project.

Reframing the Outsourcing Process

Multiple functions and stakeholders from the buyer and the supplier are involved and affected, either directly or indirectly, by the outsourcing process and the way it is managed. These can all assign different meaning to the evaluations and decisions made during the process, which in turn may strongly influence its success. To avoid distrust and suboptimal solutions, managers need to take into consideration different stakeholders’ opinions when making key outsourcing decisions. However, capturing these opinions is cumbersome, and may slow down the outsourcing process significantly. This paper proposes a segmentation approach to rationalize the inclusion of different stakeholders’ opinions in outsourcing decision-making. More specifically, Bolman and Deal’s four leadership frames are used to consider multiple opinions regarding a production transfer between a Norwegian manufacturer of advanced hydro-acoustic sensor systems and one of its strategic suppliers. The paper shows how a multi-frame model may bring new understanding to key outsourcing decisions, and ensure that multiple stakeholders’ opinions are considered throughout the process.

A Production Transfer Risk Assessment Framework

Many companies transfer production between them as part of relocation processes such as offshoring and outsourcing. Such production transfers (PT) are often associated with the risk of not achieving the expected performance results. Thus, many scholars and practitioners have acknowledged the importance of a thorough PT planning, based on risk management principles. One major principle is the assessment of PT risk in early stages of the process, in order to identify risk factors, analyze potential risk scenarios generated by the factors, implement risk-mitigation actions and improve PT performance. While several scholars have recommended conducting assessments early in the transfer process, which through the risk management lens, can be regarded as variants of risk assessment, there has not been published any recent review of the extant research on the risk assessment early in the PT process. Thereby, the main objectives of this paper are to identify and classify potential risk factors in the extant research, propose an assessment tool and test its utility on a longitudinal PT case. The paper also provides suggestions of how to apply the proposed tool to evaluate the requirements for resource intensive activities between the PT parties.