Intelligent Non-hierarchical Manufacturing Networks

This book provides the latest models, methods and guidelines for networked enterprises to enhance their competitiveness and move towards innovative high performance and agile industrial systems. In the new global market, competitiveness and economic growth rely greatly on the move toward innovative high performance industrial systems and agile networked enterprises through the creation and consolidation of non-hierarchical manufacturing networks of multi-national SMEs as opposed to networks based on powerful large-scale companies. Network performance can be significantly improved through more harmonious and equitable peer-to-peer inter-enterprise relationships, conforming decentralized and collaborative decision-making models. Traditional hierarchical manufacturing networks are based on centralized models, where some of the actors involved must adapt themselves to the constraints defined by those who are most dominant. Real-world experiences of such models have revealed some major problems due to the centralized vision of the supply chain and the sub-optimal performance of centralized decision-making. For the current highly dynamic markets, this generates major inefficiencies in operation throughout the supply chain. This book collects the latest research regarding non-hierarchical manufacturing networks and provides enterprises with valuable models, methods and guidelines to improve their competitiveness.

Table of Contents:
Preface xv Part 1. Strategic 1 Chapter 1. Mass Customization as an Enabler of Network Resilience 3 Frank T. PILLER and Frank STEINER 1.1. Introduction 3 1.2. The increasing importance of customer-centric manufacturing networks 4 1.3. Mass customization: providing an organizational structure for resilient manufacturing networks 6 1.3.1. Solution space development 8 1.3.2. Robust process design 11 1.3.3. Choice navigation 14 1.4. Conclusion 16 1.5. Acknowledgments 17 1.6. Bibliography 17 Chapter 2. The Implications of Product Variety for Supply Network Design 23 Andrew LYONS, Lucy EVERINGTON, Jorge HERNANDEZ and Dong LI 2.1. Introduction 23 2.2. Literature review 24 2.2.1. Variety and customization management 24 2.2.2. Examples of product variety increase 26 2.2.3. Network classification systems 27 2.3. Integrated framework for customization and variety management 28 2.3.1. Strategic considerations 31 2.3.2. Operational considerations 33 2.3.3. Network collaboration 34 2.3.4. Customization/variety enablers 35 2.4. Conclusions and future research 37 2.5. Acknowledgment 37 2.6. Bibliography 37 Chapter 3. Model for the Integration of Product, Process and Supply Network in Mass Customization Scenarios 41 Eduardo SAIZ, Eduardo CASTELLANO, Raquel SANCHIS, Raúl POLER and Rubén DE JUAN MARÍN 3.1. Introduction 41 3.2. Conceptual model overview 42 3.3. ORM problems 44 3.4. ORM building blocks and related ORM concepts 47 3.4.1. Order fulfillment strategy 48 3.4.2. Order generation 49 3.4.3. Order instantiation 50 3.4.4. Order promising 56 3.4.5. Order planning 58 3.4.6. Order execution 60 3.5. ORM key performance indicators 60 3.6. ORM toolbox 61 3.6.1. Toolbox matrix 63 3.6.2. Toolbox guidelines 64 3.7. ORM Web navigation tool 67 3.8. Conclusions 68 3.9. Acknowledgment 70 3.10. Bibliography 70 Chapter 4. Supply Network Configuration 73 Eduardo CASTELLANO, Juan Manuel BESGA, Jone Uribetxebarria and Eduardo SAIZ 4.1. Introduction 73 4.2. Supply network simulation: A literature review 74 4.2.1. Introduction 74 4.2.2. SN simulation methods 75 4.2.3. SN simulation conclusions 79 4.3. Research problems and research approach 79 4.3.1. Research problems 79 4.3.2. Research approach 81 4.4. DSS description 82 4.4.1 DSS dynamic view 82 4.4.2 DSS static view 85 4.5. DSS supply network configuration experiments 89 4.5.1. Introduction 89 4.5.2. Experiments description 89 4.5.3. Simulation experiments 99 4.6. Conclusions 101 4.7. Acknowledgments 102 4.8. Bibliography 102 Chapter 5. Performance Management 107 Pedro S. FERREIRA, Pedro F. CUNHA, Luís MAIA CARNEIRO and André SÁ 5.1. Introduction 107 5.2. Strategic decisions 110 5.3. A framework for performance management 112 5.3.1. A stakeholder’s centered approach 115 5.3.2. A value-based approach – the key success factors 116 5.3.3. Reference process for performance management 118 5.4. Conclusions 120 5.5. Acknowledgments 121 5.6. Bibliography 121 Chapter 6. Sustainable Product-Process-Network 125 Luca CANETTA, Donatella CORTI, Claudio Roberto BOËR and Marco TAISCH 6.1. Sustainable mass customization as a winning business model 125 6.2. Tools enabling the solution space development 128 6.2.1. Collect customer’s requirements tools 129 6.2.2. Design tools 129 6.2.3. Production technologies 130 6.2.4. Assessment tool 130 6.2.5. Configurator 130 6.3. Design process and tools enabling the solution space development 131 6.3.1. Analysis of design process: shifts introduced from mass production to sustainable mass customization 131 6.3.2. Relationship between design process shifts and enabling tools 134 6.4. Supporting the implementation of the tools 138 6.4.1. Collect customer’s requirements tools 139 6.4.2. Design tools 140 6.4.3. Production technologies 140 6.4.4. Assessment tool 141 6.4.5. Configurator 142 6.5. Managerial implications 144 6.6. Acknowledgment 145 6.7. Bibliography 145 Part 2. Tactical 147 Chapter 7. Business Community Management 149 Ricardo ALMEIDA, Luis MAIA CARNEIRO, André SÁ, Pedro S. FERREIRA and Rosanna FORNASIERO 7.1. Introduction 149 7.2. Business communities management 151 7.2.1. Introduction 151 7.2.2. Main actors 153 7.2.3. BUILD phase 1: creating a Business Community 153 7.2.4. BUILD phase 2: Business Community operation 159 7.2.5. BUILD phase 3: Business Community metamorphosis 165 7.2.6. BUILD phase 4: Business Community dissolution 165 7.2.7. ICT support 166 7.3. Conclusions 167 7.4. Acknowledgments 167 7.5. Bibliography 167 Chapter 8. Network Collaboration 169 Bernd SCHOLZ-REITER, Christian MEINECKE and Daniel RIPPEL 8.1. Introduction 169 8.2. Collaboration – definition, concepts and mechanisms 170 8.3. The European electronic industry (EEI) and collaboration challenges 171 8.3.1. EEI in numbers 172 8.3.2. Application segments of the European electronic industry 173 8.3.3. Collaboration challenges in the European electronics industry 175 8.4. Network collaboration in the EEI – results of use case studies 177 8.4.1. Requirements and indicators for efficient network collaboration 177 8.4.2. Network collaboration in the EEI – application segment profiles 178 8.5. Acknowledgments 182 8.6. Bibliography 182 Chapter 9. A Collaborative Planning Approach for Non-hierarchical Production Networks 185 Ricardo ALMEIDA, César TOSCANO, Américo LOPES AZEVEDO and Luis MAIA CARNEIRO 9.1. Introduction 185 9.2. Related work 188 9.2.1. Collaborative networks 188 9.2.2. CN governance models 189 9.2.3. Collaborative planning approaches 189 9.3. Collaborative planning requirements 192 9.4. Collaborative planning approach 194 9.4.1. Aggregate collaborative planning 195 9.4.2. Detailed collaborative planning 198 9.4.3. Evaluating the solutions’ quality 199 9.5. Conclusions 201 9.6. Acknowledgments 203 9.7. Bibliography 203 Chapter 10. Assessment of the Impact of Missing Delivery Reliability 205 Günther SCHUH, Thomas JASINSKI, Itziar RICONDO and Arkaitz URIARTE 10.1. Introduction 205 10.2. Importance of delivery reliability in today’s competitive environment 206 10.2.1. Challenges of purchasing in the machine tool and equipment industry 206 10.2.2. Effects of missing delivery reliability in non-hierarchical networks 208 10.2.3. Failure of approved coordination mechanisms 208 10.2.4. Necessity of a non-centralized coordination mechanism 209 10.3. Mini-survey – delivery reliability in European machine tool industry 209 10.3.1. Overview of the survey’s participants 210 10.3.2. Main findings – challenges in logistics 211 10.3.3. A branch’s desire – determination of costs of unpunctual deliveries 212 10.4. Calculating the monetary value of in time deliveries 214 10.4.1. Methodology for calculating the value of in-time deliveries 214 10.4.2. Case study 220 10.5. Summary 222 10.6. Bibliography 223 Chapter 11. Supplier Relationship Management in Machine Tool Industry 225 Günther SCHUH, Thomas Jasinski, Anja NESTLER, Roberto PINTO, Marco TAISCH and Arkaitz URIARTE 11.1. Introduction 225 11.2. Control loop of supplier relationship management 226 11.2.1. Elements of the SRM control loop 226 11.2.2. Inputs and outputs relevant for the control loop 229 11.3. Order management processes in non-hierarchical production networks 231 11.3.1. Order management, production planning and scheduling 231 11.3.2. Order execution reference processes and inter-company interfaces in the machine tool and equipment industry 232 11.4. Performance evaluation indicators 236 11.4.1. The KPIs framework in the SRM context 238 11.5. Improving supplier’s delivery reliability through incentives 239 11.5.1. Incentive in the European machine tool industry 240 11.5.2. A methodology for supplier incentive in machine tool industry 241 11.6. Conclusions 245 11.7. Bibliography 246 Chapter 12. Sustainable Mass Customization Assessment 249 Andrea BETTONI, Donatella CORTI, Alessandro FONTANA, Mahnoosh ZEBARDAST and Paolo PEDRAZZOLI 12.1. The need to assess sustainable mass customization 249 12.2. Key assumptions for the model development 251 12.2.1. Lifecycle perspective 252 12.2.2. Unit of analysis: the solution space 253 12.3. The assessment framework 254 12.3.1. The S-MC-S indicators 255 12.3.2. The assessment framework 263 12.4. One tool, several applications 268 12.5. How to implement the assessment model 271 12.6. Conclusions 274 12.7. Acknowledgments 274 12.8. Bibliography 275 Part 3. Operational 277 Chapter 13. A Decision Reference Model for Non-hierarchical Networks 279 Marc ZOLGHADRI, Claudia ECKERT, Xin ZHANG and Yan LIU 13.1. Modeling and supporting decision-making in a non-hierarchical network 279 13.2. Basic concepts 282 13.2.1. Non-hierarchical networks 282 13.2.2. Exchanging operational, tactical and strategic data 284 13.3. GRAI modeling background 286 13.4. GRAI-Project 288 13.4.1. Existing limits of GRAI-Manufacturing modeling techniques 288 13.4.2. Product development: the GRAI-Project 288 13.4.3. Data exchange mapping 293 13.4.4. The non-hierarchical decision-making reference model 295 13.4.5. Methodology 297 13.5. Illustrative case 298 13.5.1. The firm: Belgium Electronics 298 13.5.2. Objectives and problems of the enterprise 301 13.5.3. Application of the methodology 301 13.5.4. An example of interviews: Chief Executive Officer Mr. Thomas Roberts 303 13.6. Conclusions 305 13.7. Acknowledgment 306 13.8. Bibliography 310 Chapter 14. Evaluation of Collaborative Processes 313 Bernd SCHOLZ-REITER, Daniel RIPPEL and Christian MEINECKE 14.1. Introduction 313 14.2. Collaborative processes 314 14.3. Requirements on information exchanges in non-hierarchical supply networks 316 14.4. Existing methods to evaluate collaborations in supply networks 317 14.5. Evaluation of the suitability of software tools in collaborative processes 320 14.5.1. Evaluation scenario preparation 320 14.5.2. Evaluation workshops 321 14.5.3. Interpretation 324 14.6. Conclusion 324 14.7. Acknowledgments 325 14.8. Bibliography 325 Chapter 15. Performance Measurement 329 Pedro S. FERREIRA, Pedro F. CUNHA, Luís MAIA CARNEIRO and César TOSCANO 15.1. Introduction 329 15.2. Performance measurement in the Net-Challenge’s framework for performance management 331 15.3. Supporting the strategy execution in collaborative networks 332 15.3.1. Strategy deployment – the performance factors 332 15.3.2. Collaboration: a key performance factor 335 15.4. Performance measurement process 337 15.4.1. Definition of what to measure and targets setting 338 15.4.2. Setup of a measurement system 340 15.4.3. Measurement and analysis of performance 341 15.5. ICT platform to support performance management 342 15.5.1. Performance management system setup 343 15.5.2 Data collection 343 15.5.3. Review performance 344 15.6. Conclusions 345 15.7. Acknowledgments 346 15.8. Bibliography 346 Chapter 16. Event Monitoring and Management Process in a Non-hierarchical Business Network  349 A.H.M. SHAMSUZZOHA, Sami RINTALA, Pedro F. CUNHA, Pedro S. FERREIRA, Timo KANKAANPÄÄ, Luis MAIA CARNEIRO 16.1. Introduction 349 16.2. Literature review 351 16.3. Event monitoring and management: perspectives from business network 353 16.4. Types of events in networked business 354 16.5. Collaborative event monitoring and management: an ontology-based approach 356 16.5.1. Event monitoring 357 16.5.2. Event management 358 16.6. Collaborative event monitoring and management: a case example 365 16.7. Discussion and conclusions 368 16.8. Acknowledgments 369 16.9. Bibliography 370 Chapter 17. Extended Business Processes Execution 375 Rubén Dario FRANCO and Rubén de JUAN-MARÍN 17.1. Resilient networks and extended business processes execution 375 17.2. Achieving extended business processes modeling and execution 376 17.2.1. Interoperability concerns in resilient networks 377 17.2.2. Moving from business process modeling to execution in ColNet 379 17.3. ColNet approach and solution 380 17.3.1. ColNet general approach 380 17.3.2. ColNet functional perspective 382 17.3.3. ColNet technical description 383 17.3.4. ColNet roles 385 17.4. Application example 386 17.4.1. Ecosystem configuration and management 386 17.4.2. Supporting Gheprix network lifecycle 389 17.5. Conclusions 393 17.6. Acknowledgments 393 17.7. Bibliography 394 Chapter 18. Standardization in IT-Based Procurement in Non-hierarchical Networks 395 Jürgen NEISES, Anja NESTLER, Roberto PINTO, Itziar RICONDO, Marco TAISCH and Arkaitz URIARTE 18.1. Introduction 395 18.2. IT-based procurement in machine tool industry 396 18.2.1. IT solutions for the coordination of order transaction processes 396 18.2.2. Implementation level of IT-based procurement in machine tool industry 399 18.3. Necessity of standards for secure communication in non-hierarchical networks 400 18.3.1. Characteristics of non-hierarchical manufacturing networks 401 18.3.2. Standards in secure electronic communication 402 18.4. Secure messaging and archiving in non-hierarchical production networks 404 18.4.1. Generic security issues in electronic business processes 404 18.4.2. Storage issues 407 18.5. Electronic data interchange 408 18.5.1. EDI: legally binding communication in a non-hierarchical production network 409 18.5.2. Structure of the EDI agreement 411 18.5.3. Checklist technical annex 411 18.5.4. Simple multilateral EDI in non-hierarchical networks 412 18.6. Summary 413 18.7. Bibliography 415 List of Authors 419 Index 423

About the Author :
Raúl Poler is Professor in Operations Management and Operations Research at the Polytechnic University of Valencia (UPV). His key research topics include Enterprise Modelling, Collaborative Networks, Knowledge Management, Production Planning and Control and Supply Chain Management. Luis Maia Carneiro has been Operational Manager of the Manufacturing Systems Engineering Unit of INESC Porto, Portugal since 1996. His key research interests include Collaborative Networks and Innovation Management. Thomas Jasinski is a Senior Research Associate at the Laboratory of Machine Tools and Production Engineering (WZL) at RWTH Aachen University, Germany currently working on his PhD in Industrial Engineering/Production Management. Marc Zolghadri is currently the Head of Design Engineering (ICO) of IMS-Bordeaux Labs (Laboratoire d'Intégration du Materiau au Système) at Bordeaux 1 University, France. His key research topics include Enterprise Modelling, Engineering Design, Extended product design as well as Supply Chain Management. Paolo Pedrazzoli is Professor in Modeling and Simulation at SUPSI (University of Applied Science of Southern Switzerland). He is head of the SPS-Lab (Sustainable Production System Laboratory) and the BSc degree course in Industrial Engineering at SUPSI.