Martin Rudberg

Manufacturing networks and supply chains: an operations strategy perspective

The purpose of this paper is to analyze manufacturing networks and supply chains from an operations strategy perspective. These two areas have traditionally been treated as separate research tracks, but with the ongoing globalization of markets and operations there is a need to integrate these complementary disciplines to study networks of facilities. In this paper we examine the two research areas based on two structural decision categories in an operations strategy, viz. facilities and vertical integration. We present a typology for the analysis of network systems resulting in four basic network configurations. Coordination of activities within the network is contingent upon the configuration, thus resulting in four coordination approaches. The configuration and coordination analyzes can be used as a foundation for further research in the context of integrating manufacturing network and supply chain theory.

Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning

Efficient long-term capacity management is vital to any manufacturing firm. It has implications on competitive performance in terms of cost, delivery speed, dependability and flexibility. In a manu ...

Mass customization in terms of the customer order decoupling point

In recent years the customer order decoupling point (CODP) has gained increased acceptance as an important concept when organizing value-adding activities in production and logistics. The CODP, which is defined as the point in the value-adding material flow that separates decisions made under uncertainty from decisions made under certainty concerning customer demand, is however normally only used for production- and distribution- related activities. Here we adjust the typical CODP typology and show how the engineering resources can be integrated with the production process so as to take the features of mass customization environments into account. This paper also examines existing mass customization frameworks and offers a more thorough and nuanced typology for classifying various levels of mass customization. Finally, the adjusted CODP typology is used as a foundation for developing a reliable order promise process for mass customizers.

Integrating production and engineering perspectives on the customer order decoupling point

Purpose – Traditionally the customer order decoupling point (CODP) has focused mainly on the separation of production performed on speculation from commitment to customer orders. Engineering has, w ...

Collaborative supply chain planning using electronic marketplaces

The purpose of this paper is to show how the functionality of electronic marketplaces can facilitate collaborative supply chain planning. Supply chain planning processes are identified and analysed using a supply chain management focus. The paper also gives a brief introduction to a framework for supply chain management and to the typical structure of electronic marketplaces. Furthermore, three collaborative supply chain planning scenarios are defined, and it is shown how collaborative supply chain planning typically could be implemented on an electronic marketplace by the means of a Web‐based demonstration. As such, the paper shows how electronic marketplaces can be used to enable supply chain integration.

Applying advanced planning systems for supply chain planning: three case studies

Purpose – The purpose of this paper is to explore how standardized advanced planning systems (APS) can be used for solving planning problems at tactical and strategic levels, and to identify the perceived effects of using APS. Design/methodology/approach – Multiple case studies involving three cases using APS software for strategic network planning and master production scheduling are conducted. Comparative analysis explores how the planning situation, the model design and use of the APS impact the perceived planning effects. Findings – Findings show how APS support cost-optimized strategic network design in one case and how efficiency, capacity utilization and delivery service problems were decreased in two cases using APS in global master planning processes. The cases show how APS supports cross-functional integration and supply chain commitment to a common plan. Research directions are suggested about the feasibility of APS in situations with various planning complexities, how design of the optimization model creates complexity and affects the planning process, data gathering requirements when using APS, the role and design of the planning organization, and how to achieve positive planning effects, such as finding global optimum and single plan commitment. Research limitations/implications – The approach is descriptive and explorative. Only three cases are studied. Practical implications – The findings present experiences of APS usage and identify issues to consider when using APS and potential benefits to gain from usage. Originality/value – The practical use of APS is low and the knowledge about how it impacts supply chain planning and performance is unexplored. The findings of this paper fill some of these gaps.

Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems

For any manufacturing firm, theory suggests that the firm is better off if the manufacturing planning and control (MPC) system supports the market strategy as well as the manufacturing strategy. Typically, the strongest link between market requirements and manufacturing strategy concerns the process choice, i.e. choosing a manufacturing process that supports a firms competitive priorities. The general aim of this paper is to examine the role of the MPC system in a manufacturing strategy. More specifically, the purpose is to link market requirements, product characteristics, and the process choice to the MPC system. A special focus will be placed on the link between the process choice and the design of the MPC system. Two key factors are identified as major processspecific elements influencing the MPC system design: the number of planning points, and set-up times at individual resources. The process choice affects the lower planning levels of the MPC systems, where the physical reality of the plant becomes apparent. This is especially true for production activity control, but also for requirements planning (material and capacity). Concerning the MPC system design for longer-term planning, such as sales and operations planning and master scheduling, the impact from market requirements and product characteristics dominates.

Exploiting the Order Book for Mass Customized Manufacturing Control Systems With Capacity Limitations

Customer specific requirements is one of the key drivers in a supply chain strategy based on mass customization. At the same time there are intense pressure on price and short delivery lead times providing a complex environment for managing the supply chain. The complexity can be reduced by introducing the concept of a customer order decoupling point (CODP). The CODP separates the supply chain into two key processes that can be categorized as make-to-order (MTO) and make-to-stock (MTS) and constitutes the two key building blocks of a system based on the mass customization concept. The dynamic properties of the MTS environment have been extensively researched using the automatic pipeline-, inventory-, and order-based production control system (APIOBPCS) archetype. In contrast to MTS systems, the customer facing MTO process, which is usually exposed to a more volatile demand stream suitable for an agile strategy, is less well investigated. Agility does, however, frequently not mean that infinite capacity is available but that there is some surplus capacity available and that the capacity can be adapted to the customer requirements in certain time frames. When the adaptation is not instant but requires some time to take effect the delay creates a dynamic backlog represented by the order book which affects the delivery lead time. Since controlling lead times is a key factor in providing reliable delivery promises an order book control logic is introduced. It is also shown that the new MTO model of the customer facing part of a mass customization system is an extension to the well established APIOBPCS framework

Introducing a customer order decoupling zone in logistics decision-making

The general aim of this paper is to explore the properties of the so-called customer order decoupling point (CODP) to enhance the knowledge and understanding of its possible use in operations and logistics. More specifically, the purpose is to enhance the applicability of the CODP framework so that it also covers scenarios with a gradual increase in certainty concerning information about customer demand. Differentiating between decisions made under certainty and decisions made under uncertainty of customer demand has been identified as a key issue in operations strategy and supply chain management. The CODP identifies this distinction but the concept is limited in that it assumes either total uncertainty or total certainty concerning customer demand. Acknowledging a gradual increase in certainty across multiple independent dimensions provides a point of departure for extending the decoupling point to a decoupling zone. Based on the decoupling zone, we extend the established framework for positioning the CODP and identify eight key decisions related to the decoupling zone that concern positioning, fulfilment strategies and buffer sizing.

Centralised supply chain master planning employing advanced planning systems

Higher expectations on supply chain performance force organisations to reinvent themselves in order to cut costs and increase customer service, all to gain competitive advantage. Pursuing the best network of manufacturing, supply and distribution facilities relative to the marketplace is therefore on top of many managers’ ‘most wanted’ list concerning supply chain management. Supply chain planners are thus in need of decision support to be able to establish feasible and sufficient plans. This article discusses how decision support through advanced planning systems (APS) can assist tactical supply chain planning. A case study is presented showing how APS can act as an enabler in adapting logistics and supply chain principles, as well as reducing costs through streamlining the supply chain. The purpose of this article is primarily to present findings from a case study regarding supply chain planning with the aid of a master planning APS module. The case study emphasises that APS in the scope of logistics management have several positive effects on supply chain performance.