Search results

To identify and examine the origins of complexity in a mass customization system and to propose an effective application sequence of variety management strategies in order to cope with this complexity.

Through the application of Suh's complexity theory an understanding of the causes of complexity in the specific context of a mass customization environment is developed. This facilitates the identification of the strategies that are adequate to tackle the problems induced by complexity.

The mass customization system is a coupled system that cannot be mastered simply. It is definitely impossible to transform it to an uncoupled system with a low complexity level. However, the effective and targeted implementation of variety management strategies at the product and process levels enables the management of this complexity by making the system more decoupled.

Complexity can be decreased if managers ensure less dependency between the satisfaction of customer requirements and position of the decoupling point. It is also advantageous to reduce the coupling level between fast delivery requirement in mass customization and the decoupling point placement. Furthermore, an effective variety management calls for the implementation of the identified strategies in an ascending order of complexity reduction potential.

The article relates the complexity theory of Suh to mass customization system, provides a framework for the classification of variety management strategies and derives managerial recommendations so as to reduce the complexity in a mass customization environment.

The customer order decoupling point (CODP) concept addresses the issue of customer engagement in the manufacturing process. This has traditionally been applied to material flows, but has more recently been applied to engineering activities. This later subject becomes of particular importance to companies operating in “engineer-to-order” (ETO) supply chains, where each order is potentially unique. Existing conceptualisations of ETO are too generic for practical purposes, so there is a need to better understand order penetration in the context of engineering activities, especially design. Hence, the purpose of this paper is to address the question “how do customer penetration concepts apply to engineering design activities?”

A collaborative form of inquiry is adopted, whereby academics and practitioners co-operated to develop a conceptual framework. Within this overarching research design, a focus group of senior practitioners and multiple case studies principally from complex civil and structural engineering as well as scientific equipment projects are used to explore the framework.

The framework results in a classification of nine potential engineering subclasses, and insight is given into order penetration points, major uncertainties and enablers via the case studies. Focus group findings indicate that different managerial approaches are needed across subclasses.

The findings give insight for companies that engage directly with customers on a one-to-one basis, outlining the extent of customer penetration in engineering activities, associated operational strategies and choices regarding the co-creation of products with customers. Care should be taken in generalising beyond the sectors addressed in the study.

The paper refines the definition of the ETO concept, and gives a more complete understanding of customer penetration concepts. It provides a comprehensive reconceptualization of the ETO category, supported by exploratory empirical research.

This paper aims to propose a new approach for determining a decoupling point in leagile chain, based on Lean and agile criteria regarding market and customer demands and internal capabilities of the chain with the ultimate goal of fulfilling customer needs and increasing chain profit.

In the new approach, Lean and agile criteria have been defined for assessing the effectiveness and efficiency of supply chain. The efficiency and effectiveness ratios have been calculated for Lean and agile processes using input- and output-oriented Banker, Charnes and Cooper (BCC) methods, respectively. Based on the results, inefficient and ineffective units have been addressed and the decoupling point has been determined.

Findings indicate that the decoupling point can be regarded as a borderline between two strategies of Lean and agile production, and fuzzy decoupling point and lean–agile distance can provide the basis for distinguishing the two strategies.

Determining the decoupling point has an important role in dynamic performance of a supply chain. By the proposed approach, managers can estimate the most probable area for the decoupling point. Moreover, by appropriate determination of decoupling point, an organization can increase its public responsibility by appropriate usage of its resources and responding faster to customers’ requirements.

In this study, in addition to determining a decoupling point in a supply chain with the aim of increasing productivity, the subject of leagile strategy of supply chains has been developed.

The integration of supply chains together with the disintegration of individual actors in the supply chain shifts the focus from actors to challenges in the interaction between actors. This paper aims to identify risk strategies for different supplier interactions in triadic configurations to outline supply strategies.

Companies participating in a research project recounted the challenges they faced regarding the integration of customer order-based management and supply from a triad perspective. Six triad configurations were identified, based on the literature, resulting in three risk strategies, which were empirically illustrated in practice by the participating companies.

A key finding is that a triad perspective for a customer-differentiated approach to supplier interaction results in a material classification that highlights the circumstances in which to apply “balance efficiency”, “postpone”, “balance responsiveness” and “speculate” supply strategies.

The research has focused on process drivers and controllability, and the results may require careful interpretation when there is a mix of standardized and customized products because further interaction differentiation may then be required.

The strategies developed herein provide guidelines for differentiated supplier interaction with explicit focus on triads where customer actors directly influence supplier actors. This approach highlights how outsourcing must be carefully executed when supplier actors are involved in delivery to customer orders.

The paper sheds new light on how customer requirements impact supplier interaction in terms of decoupling points related to both delivery strategy and control strategy. The study also presents a novel application of the Kraljic matrix in in terms of risk strategies in different triad configurations.

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, with few exceptions in this context, simply been viewed as occurring before production activities in a sequential manner. As competition increases, customer requirements for short lead‐times in combination with customisations requires further integration of processes involving both engineering and production activities making the traditional view of the CODP insufficient in these cases. The purpose of this paper is thus to provide a more general approach to enterprise integration of cross‐functional processes in order to extend the applicability of the CODP as a logistics oriented concept.

We use evolutionary approach to define the CODP as a two‐dimensional concept based on the integration of engineering and production.

The extended CODP captures the complexity in terms of possible configurations, but also provides a framework for the issues that must be handled when positioning the CODP in terms of both engineering and production simultaneously.

The two‐dimensional CODP is an important extension to make the theory better reflect reality and hence increase the scope and acceptance of both the concept CODP per se, and the analysis based on the CODP.

By the introduction of a new two‐dimensional approach, a more comprehensive CODP typology is defined. We also provide a classification of customer order influence based on a combined engineering and production perspective where the efficient CODPs constitute a set providing the highest level of customer value in terms of engineering adaptations.

The concept of the customer order decoupling point (CODP) has been used in many different contexts as an important structural concept for the traditional forward supply chain. The CODP is rarely explicitly applied in reverse supply chain management and the purpose of this paper is to show that the CODP can be an important corner stone of a framework for analysis of the closed‐loop supply chain containing both forward and reverse material flows.

Conceptual similarities are identified using analogies between forward and reverse supply chains. First, the concepts are discussed in their original context of forward flows and thereafter the concepts are applied on reverse flows. Finally, a holistic closed‐loop model is established.

The conventional CODP framework for forward flow supply chains can be extended to cover also reverse material flows and therefore providing a foundation for a more comprehensive discussion of closed‐loop supply chains useful in both education, research, and industrial applications. Using the suggested extended framework it is possible to identify nine fundamental supply chain configurations.

Differentiating between demand driven and forecast driven activities plays a critical role in practical supply chain management and this paper highlights that this approach also can be applied to closed‐loop supply chains and therefore extending the reach of the toolbox previously developed for the forward supply chain.

The concept CODP has not previously been comprehensively treated for the closed‐loop supply chain and this paper provides a foundation for establishing a strategic structural framework for discussing issues such as lean vs agile and balancing efficiency and responsiveness in a more comprehensive context involving also reverse material flows.

This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?

A mixed-method case approach is applied. Explanatory variables are identified from the literature and explored in a qualitative analysis at an automotive original equipment manufacturer. Using logistic regression and random forest classification models, quantitative data (historical schedule transactions and internal data) enables the testing of the predictive difference of variables under various planning horizons and inaccuracy levels.

The effects on delivery schedule inaccuracies are contingent on a decoupling point, and a variable may have a combined amplifying (complexity generating) and stabilizing (complexity absorbing) moderating effect. Product complexity variables are significant regardless of the time horizon, and the item’s order life cycle is a significant variable with predictive differences that vary. Decoupling management is identified as a mechanism for generating complexity absorption capabilities contributing to delivery schedule accuracy.

The findings provide guidelines for exploring and finding patterns in specific variables to improve material delivery schedule inaccuracies and input into predictive forecasting models.

The findings contribute to explaining material delivery schedule variations, identifying potential root causes and moderators, empirically testing and validating effects and conceptualizing features that cause and moderate inaccuracies in relation to decoupling management and complexity theory literature?

The positioning of the customer order decoupling point (CODP) is an important strategic consideration for supply chains. Recently, research has focused only on the static effects of CODP positioning. The purpose of this paper is to expand the body of knowledge by describing the dynamic consequences that arise from shifting the CODP upstream or downstream.

A generic assembly‐to‐order system dynamics simulation model is developed and used to evaluate the dynamic consequences of shifting the CODP.

Placing the CODP downstream allows for short‐term fluctuations in demand to be absorbed by the order book, leading to a stable production rate and inventory response. This benefit must, however, be weighed against any additional safety stock a CODP placed far downstream may require.

The paper demonstrates the importance of considering the dynamic aspects of CODP positioning. Further research should investigate the phenomenon for different demand scenarios and supply chain configurations.

Downstream shifting of the CODP has been identified as a powerful way to reduce variability in assembly‐to‐order systems.

This paper introduces the dynamic consequences of CODP location, providing a new perspective that should be considered when positioning the CODP.

The purpose of the study is to develop an in-depth understanding of how supplier–buyer relationships, particularly in operational coordination, are affected when a company introduces an environmental sustainability target (CO₂ emissions reduction) into its supply chain operations. The investigation focuses on the joint activities of the logistics function of the company (buyer) and the third-party logistics providers (3PLs) (suppliers).

This single-case study takes the perspective of a sustainability-conscious Danish company that outsources logistics services to 3PLs but maintains internal logistics as a boundary function. The value offering point/order penetration point (VOP/OPP) methodology is used.

The results showed that the introduction of sustainability led to the emergence of multiple decoupling points in both the demand and the supply chains. The logistics function therefore began to play the role of “integrator” across both the functions in the company and the organizations in the supply chain. The findings indicate the need to develop clear cross-functional and inter-organizational coordination mechanisms.

This is a single-case study in a Danish context.

The study provides rich insights into managing the implementation of sustainability in supply chain operations, and it exemplifies how the VOP/OPP tool can be applied by 3PLs to develop sustainable offerings.

The current research on sustainable supply chain management takes into account the entire supply chain. In contrast, this study focuses on the logistics function. The VOP/OPP concept is used to capture the processes used in actual practice, and both the buyer and the supplier are considered potential co-producers of value.

The purpose of this paper is to propose an integrative model of leagile production and to examine its influence on the quality of products based on Six Sigma approach.

A new model has been proposed in which the three strategies of postponement, mass customization, and modularization are included together with an executive algorithm. The proposed model has been examined using three main products of the Ghods Manufacturing Group, which is a manufacturer of truck body parts, from March to July 2008. In the case study, upstream and downstream processes (after processes warehousing of the semi‐manufactured parts) have been considered for the implementation of lean and agile production strategies, respectively. The product waiting time in the production section has been considered as the lean production indicator, and the warehousing time in the final warehouse has been considered as the indicator of agile manufacturing. These indicators have been evaluated before and after implementation of the proposed model and the sigma level of the studied processes has been evaluated.

The results imply that the sigma level the product A has been improved by 147 percent considering the first indicator and by 8 percent considering the second indicator. Also, product B has 65 and 47 percent and product C has 65 and 150 percent of improvement considering the two indicators, respectively.

The proposed model has not been implemented in a wide range of operations and has not covered all of the products of the case study. Also, due to the lack of literature on standard criteria for evaluating leagile production, the criterion of the duration of waste has been defined and used for leanness and the duration of final storage has been defined and applied to assembly line based on specific orders from customers, which in turn might be realized as a limitation. In comparing the process before and after improvement, there might exist other unknown factors by which, results would be affected.

While the literature includes researches on leagile production and its advantages, this investigation further proposes a leagile production model which includes three strategies of postponement, mass customization, and modularization and is employed based on Six Sigma approach.