John M. Kay

The servitization of manufacturing:a review of literature and reflection on future challenges

– The purpose of this paper is to report the state‐of‐the‐art of servitization by presenting a clinical review of literature currently available on the topic. The paper aims to define the servitization concept, report on its origin, features and drivers and give examples of its adoption along with future research challenges., – In determining the scope of this study, the focus is on articles that are central and relevant to servitization within a wider manufacturing context. The methodology consists of identifying relevant publication databases, searching these using a wide range of key words and phrases associated with servitization, and then fully reviewing each article in turn. The key findings and their implications for research are all described., – Servitization is the innovation of an organisations capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use. There are a diverse range of servitization examples in the literature. These tend to emphasize the potential to maintain revenue streams and improve profitability., – Servitization does not represent a panacea for manufactures. However, it is a concept of significant potential value, providing routes for companies to move up the value chain and exploit higher value business activities. There is little work to date that can be used to help practitioners., – This paper provides a useful review of servitization and a platform on which to base more in‐depth research into the broader topic of service‐led competitive strategy by drawing on the work from other related research communities.

Servitized manufacture: practical challenges of delivering integrated products and services

Abstract Servitization is now widely recognized as the process of creating value by adding services to products. Since this term was first coined in the late 1980s, it has been studied by a range of authors seeking to understand the wider implications of service-led competitive strategies in manufacturing. However, yet to be explored are the detailed practices and processes needed to deliver integrated products and services. Therefore, the purposes of the present paper are to illustrate the form of a real-life servitization process model, and to summarize the key challenges that a typical manufacturer experiences in supporting such a model. The work is based on an in-depth case study with a leading provider of industrial products and related services. The paper presents this study, an illustration of its servitized process model, and the implications that supporting this model has on the wider manufacturing enterprise.

The role of performance measurement in business process re‐engineering

This paper argues that a performance measurement system (PMS) is a prerequisite to the introduction of business process re‐engineering (BPR) based on the role it plays in the phases of introducing change. This hypothesis was tested by examining the relationship between the congruence of PMS and the concepts of empowerment, integration and strategic alignment. Data were collected from 301 respondents in 19 manufacturing and 30 financial companies in Bahrain. Analysis indicated that PMS and strategic alignment are strongly related, empowerment is moderately related and integration showed a weak relationship.

Towards a theoretical framework for human performance modelling within manufacturing systems design

The performance of direct workers has a significant impact on the competitiveness of many manufacturing systems. Unfortunately, system designers are ill equipped to assess this impact during the design process. An opportunity exists to assist designers by expanding the capabilities of popular simulation modelling tools, and using them as a vehicle to better consider human factors during the process of system design manufacture. To support this requirement, this paper reports on an extensive review of literature that develops a theoretical framework, which summarizes the principal factors and relationships that such a modelling tool should incorporate.

The adoption of servitization strategies by UK-based manufacturers

Abstract Almost all manufacturers offer services, but some use these as the basis for their competitive strategy. This is a growing area of interest among practitioners, policy makers, and academics, yet little is known about the adoption of servitization by UK manufacturers. In this paper a survey is presented that has been used to explore the extent, motivations, challenges, and successes of servitization within the business-to-business sector. The findings indicate, for example, that many manufacturers are succeeding with their service strategies, that they are attracted to these as a source of customer focus and revenue growth, and that such strategies require less organizational change than might be expected. Although the findings from the survey should be treated as preliminary, and further work is needed to confirm their reliability and insight, they indicate that servitization is proving to be a powerful competitive weapon for many companies.

An effective decision-support framework for implementing enterprise information systems within SMEs

Small-and-medium enterprises (SMEs) are the backbone of the economy in most countries. With the opening up of the economy, it is crucial that SMEs continuously improve their competitiveness to assert themselves in the global market. There is also a greater need for information integration in SMEs that lack the financial resources and business resilience of large enterprises. This research paper presents the development process of an effective decision-support framework for adopting integrated information systems within SMEs. The methodology comprises 11 steps, such as identifying information systems-related business problems, forming a project team, and assessing legacy systems and software vendors. The development process of the decision-support methodology has passed through four major stages: identifying the required specification of the methodology, selection and justification of the most suitable delivery medium, creating and evaluating a pilot version of the methodology, and developing the final decision-support methodology and the workbook in which it is embodied. An evaluation of the methodology concluded that it would help to improve the outcome of an integrated systems project by providing motivation, saving time, reducing risks, and assisting with decision making.

A consideration of modelling techniques that can be used to evaluate manufacturing strategies

Practising engineers frequently seek to understand what the effects of various manufacturing strategies will be on the performance of their production facilities. In this situation a computer model can help to provide insight and form predictions about future manufacturing system performance. Various types of modelling methods exist and each provide models that have distinct characteristics. This paper presents a review of popular modelling techniques and, based on the results of a structured experimental study, summarises their capabilities to support the evaluation of manufacturing strategies.

Improving the design process for factories: Modeling human performance variation

Theprocess of manufacturing system design frequently includes modeling, and usually, this means applying a technique such as discrete event simulation (DES). However, the computer tools currently available to apply this technique enable only a superficial representation of the people that operate within the systems. This is a serious limitation because the performance of people remains central to the competitiveness of many manufacturing enterprises. Therefore, this paper explores the use of probability density functions to represent the variation of worker activity times within DES models.

MANUFACTURING SYSTEMS MODELLING USING SYSTEM DYNAMICS: FORMING A DEDICATED MODELLING TOOL

Discrete event simulation is a popular aid for manufacturing system design; however in application this technique can sometimes be unnecessarily complex. This paper is concerned with applying an alternative technique to manufacturing system design which may well provide an efficient form of rough-cut analysis. This technique is System Dynamics, and the work described in this paper has set about incorporating the principles of this technique into a computer based modelling tool that is tailored to manufacturing system design. This paper is structured to first explore the principles of System Dynamics and how they differ from Discrete Event Simulation. The opportunity for System Dynamics is then explored, and this leads to defining the capabilities that a suitable tool would need. This specification is then transformed into a computer modelling tool, which is then assessed by applying this tool to model an engine production facility.

Development of a digital manual for a manufacturing system – a case study

This paper describes the development and evaluation of an information system to identify spare parts associated with an automated assembly machine that is part of a Ford engine assembly line. The information system is a digital manual, similar to a class of document called an integrated electronic technical manual. The requirements of teams of users in the engine plant are described before explaining the use of multimedia tools to create a suitable information system. The result is a collection of digital documents connected by hyperlinks to form a digital manual. Usability trials indicated that maintenance technicians and line operators would actually use such a manual in the factory. Ford maintenance managers indicated that such a manual would benefit them and the benefits are presented in detail. A version of the manual was developed for data collection and it is suggested that, in future, such manuals might be the factory users’ interface to a computerised maintenance management system.