Per Storm

Application Development in Process Firms: Adding Value to Customer Products and Production Systems

The process industries span several industrial sectors such as minerals and metals, pulp and paper, food and beverages, chemicals and petrochemicals, utilities and generic pharmaceuticals, and thus constitute a considerable part of all manufacturing industry. Application development, as an institutionalised function in process industry firms, focuses on bridging the gap between a product suppliers knowledge of the products performance scope and the customers knowledge of its own production process requirements. In an exploratory survey of major process firms in the Swedish process industries, the importance of application development to firms was judged to be very high, but there also seemed to be a window of opportunity for improvements. The most important driver was ‘an opportunity to establish long‐term sustainable customer relationships and to secure future product sales’. Expected customer outcomes differed substantially between firms. As extremes, one firm expected 80% of application development to give the customers improved products, while the other extreme expected only improved customer process technology. Because most of the firms in the study population had customers on a global market, it is argued that the research findings may be relevant and of value also to the larger worldwide population of interest.

Application development in supplier-customer collaborations: success factors for firms in the process industries

In the process industries, development with the external customer is not confined to the company’s own product development and external customer technical services and support. A substantial part of the innovation activities of a firm lies in the area of helping its customers to use supplied products more effectively. This area is generally designated application development. Since a literature survey turned up few publications, a theoretical framework was developed and an exploratory survey was carried out of Swedish process industries. The importance to the firm of product and process development is never questioned. It is concluded that the area of application development should not be overlooked either, if recognised as relevant to a firm. The study population includes only firms which are based in Sweden, but since they have many customers on a global market it is argued that the research findings to some extent can be generalised to the larger world-wide population of interest.

Modelling company generic production capabilities in the process industries : A configuration approach

Modelling company generic production capabilities in the process industries : A configuration approach

Use of volume correlation model to calculate lifetime of end-of-life steel

Abstract A new mathematical model for calculating the lifetime of steel on an annual basis, called the volume correlation model is presented. The model compares the quantities of scrap collection with the steel consumption as well as evaluates the time difference between the two data sets. The lifetime of steel was calculated for the collected end-of-life steel amounts. The calculations were performed by assuming a full recovery of the steel consumption or a non-re-circulated accumulated steel stock in society denoted the full and true lifetime of steel. Based on the volume correlation model, the lifetime of steel was calculated for the total steel, low alloyed and special steel, and stainless steel in Sweden between 1898 and 2010. Previous studies on the lifetime of steel are based on experimental measurements and numerical calculations. The full lifetime of the total amount of steel from previous studies is 31 and 35 years for the years 2000 and 2006 respectively. Based on the volume correlation model the lifetime for the total steel amount, when assuming a full recovery of the material, was calculated as 34 and 37 years for these two years. This indicates that the lifetime of steel from the volume correlation model is in a similar range, but slightly higher, compared to previously reported data. The present results show that the model could be an alternative method to calculate the lifetime of steel and other recyclable materials on an annual basis. Results show that the lifetime of the total steel amount has continuously increased between 1975 and 2010. This indicates that the accumulated steel stock in society is still large enough to withstand the high collection rate of steel scrap. Furthermore, that there are as yet no lack of untapped resource of end-of-life steel scrap assets in Swedish society.

Profiling company-generic production capabilities in the process industries and strategic implications

Purpose – A robust description of the material transformation system is fundamental for understanding its capabilities and thus for communicating, prioritising and changing the system. Deploying a previously developed configuration model the purpose of this paper is to test the industrial usability of the model as an instrument to gain a better understanding of the material transformation system through externalising the generic production capabilities of the system. Design/methodology/approach – In a multiple case study approach and using a prior conceptual configuration model of the material transformation system in the process industries as a research instrument, company-generic production capabilities were investigated in three companies representing the mineral, food and steel industries. Findings – The empirical results supported the utility of the model as an instrument in providing a coherent set of elements that define operations and thus serve as a platform to model company-generic production capabilities and serve as input to strategizing though implicating needed change to the material transformation system. The theoretical contribution was mainly the empirical validation of the previously developed conceptual model as a tool in knowledge formation of the capabilities of the system and to outline the concept of “production capabilities configuration”. Research limitations/implications – Three sectors of the process industries were studied but it is recommended that the results should be replicated in complementary case studies or a survey of larger samples from the process industries. Those studies should not only be limited to increase the empirical knowledge base, but possibly to identify additional new variables, further refine the set of variables in the present model and investigate their relationships. Practical implications – It is argued that the model can already be used as a tool to support both horizontal and vertical communication on production capabilities, thus facilitating, e.g. manufacturing strategy development. Originality/value – The validated conceptual model supported by the empirical evidence is new knowledge to be used in the analysis of company-generic production capabilities in the process industries.

Using Expert Systems in Blast Furnace Operation — a few preliminary impressions

In this paper the enigmatic development of a expert system for blast furnace control in the steel industry. It is used as an example of how a perceived “low tech” industry may develop a “high tech” tool and the paper point to some initial impressions on consequences both on an industry and individual level.