Jonathan Gosling

A supply chain flexibility framework for engineer-to-order systems

The purpose of this paper is to develop and investigate a four-step framework for achieving appropriate flexibilities to mitigate the uncertainties experienced in supply chains. The framework is developed through four literature streams and then investigated in the specific setting of the construction industry. The empirical research is based on a case study design, involving two construction supply chain networks including 12 suppliers. The investigation shows how the framework can be applied, demonstrating that it provides a practical route map for organisations to follow. The four steps include: classify the supply chain, identify and analyse uncertainties, optimise pipelines and develop strategic flexibility. Example outputs are presented for each framework step from the empirical investigation. The principal academic contribution is the structured approach provided by the framework, and in doing so, it consolidates and establishes relationships between fields and concepts.

Principles for the design and operation of engineer-to-order supply chains in the construction sector

By integrating the approaches of Forrester and Burbidge [Forrester, J. W. 1961. Industrial Dynamics. Pegasus Communications; Burbidge, J. L. 1961. “The “New Approach” to Production.” Production Engineer 40: 769–784], a set of five design principles have emerged which provide a foundation for sound supply chain design. The ‘FORRIDGE’ principles have since been shown to be a powerful guide for effective design of make-to-stock supply chains. However, some have questioned the applicability of generic supply chain thinking, arguing for a tailored approach. Hence, the goal here is to investigate how these principles should be adapted for engineer-to-order (ETO) industries, such as construction, capital goods and shipbuilding. The empirical elements draw on an extensive study of 12 suppliers and two large contractors in the construction industry. Supply chain tactics are identified for this range of companies, which are matched with real world problems, and linked with the FORRIDGE principles. This results in an additional ‘Design for X’ principle being proposed. The contributions made are the adaptation of established principles for the ETO sector, and the framework behind these principles.

Identifying and categorizing the sources of uncertainty in construction supply chains

Uncertainty affecting operations has long been recognized by researchers as a major obstacle to the delivery of customer value in supply chains. Whilst it has been acknowledged that different types of supply chain have different uncertainty profiles, there is little academic literature addressing the particular uncertainties relating to engineer‐to‐order (ETO) supply chains, where each product is designed for the needs of a specific customer. The key research question addressed in this paper is ‘How can the substantive sources of project uncertainty in construction supply chains be identified and categorized?’ A three‐phase framework for the identification and categorization of uncertainty is proposed. The empirical investigation reported in this paper demonstrates how the framework may be applied to a group of ETO projects. Using multiple data collection methods, including site visits, interviews and industry workshops, the uncertainties in five projects are identified and categorized using the framework to demonstrate its application. The framework thereby established is generalized to cover a range of construction projects

Supplier development initiatives and their impact on the consistency of project performance

Many empirical studies exploring the impact of supply chain management on performance metrics have been undertaken in the manufacturing and retail sectors, espousing the positive outcomes attainable. Owing to a range of industry characteristics, some have questioned the effectiveness of such initiatives in the construction sector, and it has been noted that there is a lack of longitudinal empirical data in this setting. Exploiting a unique performance dataset gathered from a global construction company’s archival records (1990–2013), the following question is addressed: ‘what is the impact of supplier development initiatives on key performance indicators (KPIs) in a construction supply chain?’. Mobilizing established frameworks on relationship types and supplier development initiatives, suppliers are organized into relational categories, including ‘strategic partners’, ‘preferred’ and ‘approved’ suppliers. A combination of descriptive statistics, ANOVA and Levene’s tests was used to analyse the data. The findings report a significant difference between the volatility of performance between different groups. The higher the level of partnership in the relational category, the more consistency there will be in performance. Suppliers in the approved category perform less well on the ‘closeout’ KPI, suggesting a need for initiatives with this category to help raise performance on closeout issues.

Defining and categorizing modules in building projects: an international perspective

AbstractModularization involves breaking up a system into discrete chunks, which communicate with each other through standardized interfaces, rules, and specifications. It is a broad concept with various interpretations and meanings across research disciplines. The complexity and scope of a module is not captured sufficiently and clearly in the construction management and engineering literature, and the impact of modularization across project phases has not been fully explored and articulated. Therefore, the main question addressed in this paper relates to the inherent meaning of what is a module in the context of different phases of a building project. In addressing this question, this paper empirically investigates the use of modularity in 15 construction projects situated in Italy, Germany, Brazil, and the United Kingdom. The findings of this research suggest that a design-based and an operations-based perspective of modularity coexist, and that there is the need for an integrated view of modularity ac...

Extending customer order penetration concepts to engineering designs

Purpose - The customer order decoupling point (CODP) concept addresses the issue of customer engagement in the manufacturing process. This has traditionally been applied to material flows, but has more recently been applied to engineering activities. This later subject becomes of particular importance to companies operating in ‘engineer-to-order’ (ETO) supply chains, where each order is potentially unique. Existing conceptualisations of ETO are too generic for practical purposes, so there is a need to better understand order penetration in the context of engineering activities, especially design. Hence, we address the question ‘how do customer penetration concepts apply to engineering design activities?’ Methodology - A collaborative form of inquiry is adopted, whereby academics and practitioners co-operated to develop a conceptual framework. Within this overarching research design, a focus group of senior practitioners and multiple case studies principally from complex civil and structural engineering as well as scientific equipment projects are used to explore the framework. Findings - The framework results in a classification of nine potential engineering subclasses, and insight is given into order penetration points, major uncertainties and enablers via the case studies. Focus group findings indicate that different managerial approaches are needed across subclasses. Implications –The findings give insight for companies that engage directly with customers on a one-to-one basis, outlining the extent of customer penetration in engineering activities, associated operational strategies and choices regarding the co-creation of products with customers. Care should be taken in generalising beyond the sectors addressed in the study. Originality - The paper refines the definition of the ETO concept, and gives a more complete understanding of customer penetration concepts. It provides a comprehensive reconceptualization of the ETO category, supported by exploratory empirical research.

Establishing a maturity model for design automation in sales-delivery processes of ETO products

This paper proposes a maturity model for design automation in ETO companies.The model supports the analysis and improvement of design automation activities.5 different levels of maturity across 4 dimensions were identified.4 empirical cases give in-depth insights in the different dimensions. Short delivery times are considered a competitive advantage in the engineer-to-order (ETO) sector. Design-related tasks contribute to a substantial amount of delivery times and costs since ETO products have to be either fully developed or adapted to customer specifications within tendering or order fulfillment. Approaches aiming at a computerised automation of tasks related to the design process, often termed design automation or knowledge-based engineering, are generally regarded as an effective means to achieve lead time and cost reductions while maintaining, or even improving product quality. In this study we propose a maturity model as a framework for analyzing and improving such activities in ETO companies. We contribute to the literature in being the first to investigate design automation in the ETO sector from a maturity perspective. Beyond that, we extend the extant literature on design automation, which is of a highly technical nature, by providing a framework considering organizational and managerial aspects. The findings indicate that five different levels of maturity can be achieved across the dimensions strategies, processes, systems, and people. Empirical cases give insight into these different levels. Our investigation draws from extant literature and a comparative case study involving four companies over two years.

Improving coordination in an engineer-to-order supply chain using a soft systems approach

Abstract An empirical study in the ship-building sector has been undertaken to understand the problems associated with the coordination of engineer-to-order (ETO) supply chains and to reveal insights into opportunities for improvements based on the application of soft systems methodology. A number of alternatives to improve coordination of supply chain have been proposed based on the comparison between a soft systems model and actual practice. These alternatives were summarised into seven general principles that help define the role of individual companies in coordinating ETO supply chains, highlighting the company’s structures and interdependencies that lead to project tardiness. Due to the specific nature of a project which changes according to the context, it is difficult to generalise the soft systems model. Nevertheless, future research can further explore some of the principles proposed to deal with coordination problems experienced in other types of ETO project operations, such as construction and oil and gas.

Celebrating 50 years of FORRIDGE [Editorial]

Both Jay Forrester and John Burbidge wrote landmark publications in 1961. The intervening 50 years have seen both engineers making a significant impact on research and practice of operations and supply chain management. Burbidge had already pioneered and managed just-intime principles for efficient manufacture of Spitfires during World War II. He later wrote influential articles on smooth material flow, production flow analysis and ‘group technology’, a term he used to describe his approach to production control (Burbidge 1995). Forrester made substantial contributions to computer science during WWII, and his subsequent work on industrial dynamics had considerable impact on supply chain management. By combining the latter with smooth material flow control methodologies a set of supply chain principles were set out in a Production Planning and Control (PPC) Invited Paper (Towill 1997). The latter initiative came from Asbjorn Rolstadas, former Editor of PPC, who wanted a suitable tribute paid to Burbidge following John’s death in 1995. The present Editorial provides a timely reminder and celebration of this work, and aims to stimulate further research in this key area. The resultant four ‘FORRIDGE’ principles published in 1997 pay tribute to their prime dual intellectual influences. An additional widely implied (especially by Burbidge) fifth ‘synchronization principle’ was later made quite explicit by Geary, Disney, and Towill (2006). These five Principles may be summarised as follows:

Integrate Customer Order Decoupling Point and Mass Customisation Concepts: A Literature Review

The postponement represents the key strategy for companies to achieve mass customisation. It is associated with the customer order decoupling point (CODP) positioning: the backward shifting, from a pure standardised configuration (i.e. make-to-stock (MTS)), allows companies to delay some supply chain activities until the customer order arrives, increasing product variety while maintaining efficiency. This concept has been widely analysed in the literature, but there is a lack of studies about the means to reach more standardisation starting from a pure customised configuration (i.e. engineer-to-order (ETO)). Nevertheless, the movement toward mass customisation benefits also ETO companies, by reducing costs and lead times while assuring flexibility, and represents a need in the high-competitive global markets. Therefore, this concept needs to be extended to a wider perspective that includes possible levels of customisation achievable from different configurations. This is possible through a good understanding of the CODP theory. This paper reviews the CODP literature to investigate the different existing perspectives and classify them in a structured framework. This framework compares the CODP literature with the mass customisation one, to understand what are the interconnections among them in the actual state of the art and what is missing to achieve a more general view of these concepts. This allows the study to open further research highlighting the recent trends and the uncovered topics.