Petri Helo

Logistics information systems: An analysis of software solutions for supply chain co‐ordination

– To review the development of software applications and their functionalities/benefits in relation to supply chain management and present scenarios on future development., – A range of recently published academic and non‐academic pieces of work that can be classified as pertinent to the area in question. These sources employ both theoretical and practical views on the topic of supply chain co‐ordination software and related functionalities and resulted benefits., – There is a significant overlap regarding the functionalities of software applications and the trend of convergence is about to intensify. At the same time the need for real time information will become crucial, putting emphasis on flexible IT‐systems that can deal with large amounts of data and are easy to interconnect. In turn this will lead to the growing importance of system integration software and the process of creating standards., – As a result of continuous development and convergence of IT‐solutions and turbulent business environment more applied research will be needed in the area of product configuration, RFID‐technology, standards in relation to interoperability of software applications (EAI technologies). This scrutiny is based only on written resources and no consultants or manager interviews were employed. Therefore the views of companies are not presented on the issues covered., – The selection of the appropriate software solutions for a company will need more time, expertise and money and the role of suppliers of software packages will become more significant., – This scrutiny stipulates the way the functionalities of software applications evolve with overlap one another and thus helps both researchers and companies to gain a clearer view on the development of supply chain software applications.

Critical Factors for Knowledge Management in Project Business

Purpose – The purpose of this study is to identify and examine various factors that influence the success or failure of knowledge management (KM) initiatives in project‐based companies.Design/methodology/approach – Following a literature review, the study proposes a conceptual model of six factors of potential importance to the success of KM initiatives. The model is then examined through an online survey of project managers and assistant managers from project‐based businesses in Finland.Findings – The study finds that a lack of incentives and the absence of an appropriate information system are the most significant barriers to successful KM initiatives in projects.Research limitations/implications – The findings of the study may be restricted in terms of generalisability because of the limited empirical study.Practical implications – Project managers should formulate an attractive incentive package to encourage project members to participate in KM initiatives and to suggest ideas for new KM opportunities...

Managing agility and productivity in the electronics industry

Managing the production and operations of a contemporary electronics manufacturing is challenging. Companies need to be proactive for uncertainties of the market in a productive way. This paper analyses the electronics manufacturing context and proposes the data system implementations based on context requirements. The general trends in electronics manufacturing are time‐based competition, increasing product variety and new technologies. Cost structure changes are driving productivity. Price erosion is forcing flexible operations and fast inventory turn rates. The uncertainties in electronics manufacturing that need especial management are: volume – the change in demand and its effect on lead‐time of order‐fulfilment; product mix – managing product variety and lot sizing issues and product life cycles – changing products and production technologies. Managing and measuring these dimensions require wide implementation of ERP packages. In some cases, more advance planning tools such as product configurators and advanced planning systems are required.

Dynamic modelling of surge effect and capacity limitation in supply chains

Agile manufacturing has been defined as the capability of reacting to unpredictable market changes in a cost-effective way, simultaneously prospering from the uncertainty. In many industries, vigorously changing markets are demanding more differentiated products in lower volumes and within shorter delivery times. An uncertain environment challenges the response of supply chains. This paper demonstrates, by using a system dynamic simulation, how agility is built into supply chains. Three simulation models are analysed: first, the demand magnification effect in supply chain is studied. Secondly, the analysis is extended to capacity surge effects. Finally, the trade-off between capacity utilization and lead times is discussed. The analysis recommends smaller order sizes, echelon synchronization and capacity analysis as methods of improving the responsiveness of a supply chain. Evidence is provided from simulation runs and established literature. All three models are system dynamics based replications of well-known effects from the research area of production control.

Adaptive fuzzy vendor managed inventory control for mitigating the Bullwhip effect in supply chains

This paper proposes an adaptive fuzzy control application to support a vendor managed inventory (VMI). The methodology applies fuzzy control to generate an adaptive smoothing constant in the forecast method, production and delivery plan to eliminate, for example, the rationing and gaming or the Houlihan effect and the order batching effect or the Burbidge effects and finally the Bullwhip effect. The results show that the adaptive fuzzy VMI control surpasses fuzzy VMI control and traditional VMI in terms of mitigating the Bullwhip effect and lower delivery overshoots and backorders. This paper also guides management in allocating inventory by coordinating suppliers and buyers to ensure minimum inventory levels across a supply chain. Adaptive fuzzy VMI control is the main contribution of this paper.

Toward a cloud-based manufacturing execution system for distributed manufacturing

Abstract This paper illustrates the needs and challenges for the management of distributed manufacturing in a multi-company supply chain and processes these further as features of new IT systems. Requirements are collected from manufacturing companies and combined with insights from literature in the field of current ERP/MES system drawbacks, advantages, needs and challenges. The findings show that the needs and challenges in data integration inside SME networks are closely related to the limitations of current supply chain solutions. Current ERP-solutions lack extended enterprise support and a shared cloud-based approach. On the other hand, current MES solutions can operate the manufacturing process, but not for distributed manufacturing. As an answer to the requirements, we made a proposal for the core of architecture for next generation of MES solution in this position paper. Moreover, a pilot software tool has been developed to support the needs related to real time, cloud-based, light weight operation.

A model of resilient supply chain network design: A two-stage programming with fuzzy shortest path

A supply chain network design needs to consider the future probability of reconfiguration due to some problems of disaster or price changes. The objective of this article is to design a reconfigurable supply chain network by optimizing inventory allocation and transportation routing. A two-stage programming is composed according to Benders decomposition by allocating inventory in advance and anticipating the changes of transportation routings; thus the transportation routing is stochastic in nature. In addition, the fuzzy shortest path is developed to solve the problem complexity in terms of the multi-criteria of lead time and capacity with an efficient computational method. The results and analysis indicate that the proposed two-stage programming with fuzzy shortest path surpasses the performance of shortest path problem with time windows and capacity constraint (SPPTWCC) in terms of less computational time and CPU memory consumption. Finally, management decision-making is discussed among other concluding remarks.

Product configuration analysis with design structure matrix

Purpose – Product configurator is a sales and production‐planning tool that helps to transform customer requirements into bills‐of‐materials, lists of features and cost estimations. The purpose of this paper is to introduce a method of how to analyse sales configuration models by using a design structure matrix (DSM) tool. By applying the DSM techniques, the sales configuration managers may sequence the product configuration questions and organize the connection to production.Design/methodology/approach – First, the paper explains a sales configuration system structure from published academic and non‐academic works. These sources employ both theoretical and practical views on the topic of computer‐based sales expert systems. Second, the paper demonstrates an application of using DSM for configuration modelling.Findings – The current sales configuration approaches include constraint‐based, rules‐based, and object‐oriented approaches. Product description methods vary, but the general problem remains the sam...

Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game

Product family design by module configuration is conducive to accommodating product variety while maintaining mass production efficiency. Effective fulfillment of product families necessitates joint decision making of product family configuration (PFC) and downstream supply chain configuration (SCC), due to nowadays manufacturers’ moving towards assembly-to-order production throughout a distributed supply chain network. Existing decision models for joint optimization of product family and supply chain configuration are originated from an “all-in-one” approach that assumes both PFC and SCC decisions can be integrated into one optimization problem by aggregating two different types of objectives into a single objective function. Such an assumption neglects the complex tradeoffs underlying two different decision making problems and fails to reveal the inherent coupling of PFC and SCC.

Integrated Vehicle Configuration System-Connecting the domains of mass customization

Configuration design for mass customized vehicles necessitates the coordination of customer requirements, product characteristics, production processes, and logistics networks, in order to achieve rapid response to customer orders. Existing product configurators are mainly used as sales tools, and fail to account for the requirements of the entire customer order fulfillment process. In this regard, this paper proposes an Integrated Vehicle Configuration System (IVCS) to facilitate customer order processing based on information from multiple domains in a mass customization environment. An IVCS business model is proposed to incorporate the decision factors for configuration design related to different planning stages. The business model is supported by a comprehensive ontology framework, which enhances communications between different stakeholders involved in the order fulfillment process. The configuration approach is based on combinations of selective and generative rules and can be integrated with existing ERP systems. It also provides mechanisms to handle configuration rules that allow users to convert soft preferences into product specifications, bill-of-materials, and, furthermore, into logistics configurations. An example of a computerized configuration system showcases the process from customer engineering to design and production.