Rawina Varandani

Dealing with the Need for Flexibility and Economies of Scope in Global Production Network Design

The structure of production networks is determined by two key objectives. The first objective lies in the generation of economies of scale which propel the concentration of manufacturing in mass production sites in order to persist in the global market. The second objective is the individualization of products driven by decreasing lot sizes, an unpredictable market demand and growing expectations regarding proximity to the consumer which in turn lead to the need for more flexibility within the production network of companies. The dilemma increases when taking into account that product portfolios are often given due to market requirements, and product architecture is another battlefield of complexity. Todays specific challenge of global production network design therefore is the increasing number of relevant markets and planning objects, which need to be integrated into the planning scope.

Innovative Approaches for Global Production Networks

The continuous growth of production networks has led to a threefold complexity issue for multinational companies. Firstly, it lies in the tremendous number of design options taking into regard all product groups and their production processes which need to be allocated to the amount of existing or new production sites. The second complexity issue is characterized by a short amount of time available in companies for highly important decisions. The third complexity problem lies in the complexity evaluation within the production network taking into account product, manufacturing and organisational structures. These three challenges are addressed within the scope of an approach which avails itself of a digital tool using interactive computing methods. While the complexity of the solution space is handled through a mathematical optimization, visual components help to understand and analyze the given solution through interactive computing. The identification of complexity drivers within production networks constitutes the final challenge.

Gamification in Management Decisions: Judging Global Production Networks in a Cyber-Physical Way

The judgment of global production networks is facing three major challenges. The complexity, measurable through the huge solution space, as well as the time-consuming preparation of a decision in line with the limited amount of time of the final decision makers – CEOs and upper management. The experience from several industry projects showed the demand to transfer and apply the concept of gamification in a cyber-physical environment to decision-making in Global Footprint Design. Smart IT tools, which support the intuition and practical knowledge of the decision maker but do not finally make the decision for them, are needed. Based on general criteria for successful gamified IT tools three specific requirements for judging global production networks are derived: value creation, ludic goal orientation and autonomous discovery. The major challenges and these specified principles of gamification are addressed within the scope of an IT tool which simplifies and improves complex global footprint decisions by employing elements of gamification. It is analysed to which degree the criteria are already fulfilled, which benefits this prototype of a gamified IT tool can offer and what future research has to be conducted in order to fully let CEOs game their global footprint strategy.

Gemeinsame Nutzung von Overhead-Strukturen in Industrieparks

Kurzfassung Für den Standortbetrieb in internationalen Industrieparks ist es notwendig, neben der Produktion indirekte Kapazitäten für die Administration aufzubauen. Gerade für kleine und mittelständische Unternehmen erweist sich der Aufbau dieser Overhead-Funktionen als großes Hindernis. Ein Lösungsansatz zur Effizienzsteigerung ist die gemeinsame Nutzung von Overhead-Strukturen. Anhand der vorliegenden Bewertungsmethodik ist es möglich, den Umfang derjenigen indirekten Funktionen zu bestimmen, die im Kooperationsverbund betrieben werden können und sollten.