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Article
Publication date: 27 November 2018

Yuan Zhang, Stefan Jedeck, Li Yang and Lihui Bai

Despite the widespread expectation that additive manufacturing (AM) will become a disruptive technology to transform the spare parts supply chain, very limited research has been…

863

Abstract

Purpose

Despite the widespread expectation that additive manufacturing (AM) will become a disruptive technology to transform the spare parts supply chain, very limited research has been devoted to the quantitative modeling and analysis on how AM could fulfill the on-demand spare parts supply. On the other hand, the choice of using AM as a spare parts supply strategy over traditional inventory is a rising decision faced by manufacturers and requires quantitative analysis for their AM-or-stock decisions. The purpose of this paper is to develop a quantitative performance model for a generic powder bed fusion AM system in a spare parts supply chain, thus providing insights into this less-explored area in the literature.

Design/methodology/approach

In this study, analysis based on a discrete event simulation was carried out for the use of AM in replacement of traditional warehouse inventory for an on-demand spare parts supply system. Generic powder bed fusion AM system was used in the model, and the same modeling approach could be applied to other types of AM processes. Using this model, the impact of both spare parts demand characteristics (e.g. part size attributes, demand rates) and the AM operations characteristics (e.g. machine size and postpone strategy) on the performance of using AM to supply spare parts was studied.

Findings

The simulation results show that in many cases the AM operation is not as cost competitive compared to the traditional warehouse-based spare parts supply operation, and that the spare parts size characteristics could significantly affect the overall performance of the AM operations. For some scenarios of the arrival process of spare parts demand, the use of the batched AM production could potentially result in significant delay in parts delivery, which necessitates further investigations of production optimization strategies.

Originality/value

The findings demonstrate that the proposed simulation tool can not only provide insights on the performance characteristics of using AM in the spare parts supply chain, especially in comparison to the traditional warehousing system, but also can be used toward decision making for both the AM manufacturers and the spare parts service providers.

Details

Rapid Prototyping Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1355-2546

Keywords

Article
Publication date: 12 October 2018

Siavash H. Khajavi, Jan Holmström and Jouni Partanen

Innovative startups have begun a trend using laser sintering (LS) technology patents expiration, namely, by introducing LS additive manufacturing (AM) machines that can overcome…

1335

Abstract

Purpose

Innovative startups have begun a trend using laser sintering (LS) technology patents expiration, namely, by introducing LS additive manufacturing (AM) machines that can overcome utilization barriers, such as the costliness of machines and productivity limitation. The recent rise of this trend has led the authors to investigate this new class of machines in novel settings, including hub configuration. There are various supply chain configurations to supply spare parts in industrial operations. This paper aims to explore the promise of a production configuration that combines the benefits of centralized production with the flexibility of local manufacturing without the huge costs related to it.

Design/methodology/approach

This study quantitatively examines the feasibility of different AM-enabled spare parts supply chain configurations. Using cost data extracted from a case study, three scenarios per AM machine technology are modeled and compared.

Findings

Results suggest that hub production configuration depending on the utilized AM machines can provide economic efficiency and effectiveness to reduce equipment downtime. While previous studies have suggested the need for AM machines with efficiency for single part production for a distributed supply chain, the findings in this research illustrate the positive relationship between multi-part production capability and the feasibility of a hub manufacturing configuration establishment.

Originality/value

This study explores the promise of a production configuration that combines the benefits of centralized production with the flexibility of local manufacturing without the huge costs related to it. Although the existing body of knowledge contains research on production decentralization, research on various levels of decentralization is lacking. Using a real-world case study, this study aims to compare the feasibility of different levels of decentralization for AM-enabled spare parts supply chains.

Details

Rapid Prototyping Journal, vol. 24 no. 7
Type: Research Article
ISSN: 1355-2546

Keywords

Article
Publication date: 27 July 2010

Jan Holmström, Jouni Partanen, Jukka Tuomi and Manfred Walter

The purpose of this paper is to describe and evaluate the potential approaches to introduce rapid manufacturing (RM) in the spare parts supply chain.

5826

Abstract

Purpose

The purpose of this paper is to describe and evaluate the potential approaches to introduce rapid manufacturing (RM) in the spare parts supply chain.

Design/methodology/approach

Alternative conceptual designs for deploying RM technology in the spare parts supply chain were proposed. The potential benefits are illustrated for the aircraft industry. The general feasibility was discussed based on literature.

Findings

The potential supply chain benefits in terms of simultaneously improved service and reduced inventory makes the distributed deployment of RM very interesting for spare parts supply. However, considering the trade‐offs affecting deployment it is proposed that most feasible is centralized deployment by original equipment manufacturers (OEMs), or deployment close to the point of use by generalist service providers of RM.

Research limitations/implications

The limited part range that is currently possible to produce using the technology means that a RM‐based service supply chain is feasible only in very particular situations.

Practical implications

OEMs should include the consideration of RM in their long‐term service supply chain development.

Originality/value

The paper identifies two distinct approaches for deploying RM in the spare parts supply chain.

Details

Journal of Manufacturing Technology Management, vol. 21 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 3 October 2016

Sanjaykumar R. Gangurde and Amol A. Chavan

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM…

5058

Abstract

Purpose

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM) approach.

Design/methodology/approach

A five-step approach of KPM is used to identify strategic parts. The attributes affecting impact on profit and supply risk are then identified. A structured questionnaire is prepared for each attribute. Likert scale having weights from 1 to 5 is used to select method of measurement for each response. The overall score of attributes for dimensions “supply risk” and “impact on profit” interpret the position of the part, i.e., “strategic part,” “leverage part,” “bottleneck part” or “non-critical part” in the Kraljic matrix. The part having highest impact on profit and supply risk is to be considered as strategic part for defining the purchasing strategies.

Findings

This paper outlines a practical solution to the problem of designing/defining purchasing strategies for development of supplier. Impact on profit is reduced by cost reduction and quality improvement whereas supply risk reduced by improving delivery time and suppliers profile.

Research limitations/implications

The proposed methodology is applied to a boiler industry to identify the strategic parts and focus on strategic suppliers, which are fewer in number but having larger impact on profit and supply risk. The “Body” part of ball valve assembly of the boiler is considered for the study. However, it can be extended for selecting and evaluating of suppliers strategy for other parts of the boiler. Not only boiler industry sector but also other companies also benefit from the results of this study by implementing the purchasing strategies as formulated in the KPM.

Originality/value

The Kraljic matrix has been largely used in many different industries like automobile, manufacturing, construction, oil and gas, etc., as an efficient tool for developing differentiated purchasing strategies. However, its application on parts procured by boiler industry is unknown, as well as the lack of systematical approach on criteria prioritization which is one of the key issues of the methodology. This work explores the output usefulness and its applicability on ball valve assembly projects.

Details

Benchmarking: An International Journal, vol. 23 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 June 1994

Ryoichi Yoshida and Mikihisa Tajima

Outlines development work on the surfing hopper, a new parts feedingsystem where chain conveyors with free rollers are driven by avariable‐speed motor and a flexible belt is…

172

Abstract

Outlines development work on the surfing hopper, a new parts feeding system where chain conveyors with free rollers are driven by a variable‐speed motor and a flexible belt is pushed up partly by the free rollers to generate a wave in the belt. Describes how the wave effect keeps the stacked parts level and how experiments were carried out using different parts materials such as small water‐filled bottles and nuts made of steel. Looks at studies carried out on feeding correctly orientated parts to the assembly station and experiments on surfing feeding system with regard to part separation on the belt. Concludes that the surfing hopper can supply heavy parts intermittently at a rough definite supply ratio, without jamming and entangling the parts and without damage to the belt.

Details

Assembly Automation, vol. 14 no. 2
Type: Research Article
ISSN: 0144-5154

Keywords

Open Access
Article
Publication date: 30 September 2021

Sung-Ho Shin and Soo-Yong Shin

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic…

Abstract

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.

Details

Journal of International Logistics and Trade, vol. 19 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 16 September 2022

Jan Sher Akmal, Mika Salmi, Roy Björkstrand, Jouni Partanen and Jan Holmström

Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost…

2277

Abstract

Purpose

Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost and delivery performance. In the switchover to AM from conventional manufacturing, the objective of this study is to find situations and ways to improve the spare parts service to end customers.

Design/methodology/approach

In this explorative study, the authors develop a procedure – in collaboration with the spare parts operations managers of a case company – for dynamic operational decision-making for the selection of spare parts supply from multiple suppliers. The authors' design proposition is based on a field experiment for the procurement and delivery of 36 problematic spare parts.

Findings

The practice intervention verified the intended outcomes of increased cost and delivery performance, yielding improved customer service through a switchover to AM according to situational context. The successful operational integration of dynamic additive and static conventional supply was triggered by the generative mechanisms of highly interactive model-based supplier relationships and insignificant transaction costs.

Originality/value

The dynamic decision-making proposal extends the product-specific make-to-order practice to the general-purpose build-to-model that selects the mode of supply and supplier for individual spare parts at an operational level through model-based interactions with AM suppliers. The successful outcome of the experiment prompted the case company to begin the introduction of AM into the company's spare parts supply chain.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 26 July 2021

Ehsan Mohebban-Azad, Amir-Reza Abtahi and Reza Yousefi-Zenouz

This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks…

Abstract

Purpose

This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks and uncertainty in the inventory system.

Design/methodology/approach

A robust optimization approach is used to deal with the effects of uncertainty, and a mixed-integer nonlinear programming multi-objective model is proposed. The first objective function seeks to minimize inventory costs, such as ordering costs, holding costs and carrying costs. It also helps to choose one of the two modes of bearing the expenses of shortage or using the excess capacity to produce at the expense of each. The second objective function seeks to minimize the risk of disruption in distribution centers and suppliers, thereby increasing supply chain reliability. As the proposed model is an non-deterministic polynomial-time-hard model, the Lagrangian relaxation algorithm is used to solve it.

Findings

The proposed model is applied to a real supply chain in the aftermarket automotive service industry. The results of the model and the current status of the company under study are compared, and suggestions are made to improve the supply chain performance. Using the proposed model, companies are expected to manage the risk of supply chain disruptions and pay the lowest possible costs in the event of a shortage. They can also use reverse logistics to minimize environmental damage and use recycled goods.

Originality/value

In this paper, the problem definition is based on a real case; it is about the deficiencies in the after-sale services in the automobile industry. It considers the disruption risk at the first level of the supply chain, selects the supplier considering the parameters of price and disruption risk and examines surplus capacity over distributors’ nominal capacity.

Details

Journal of Modelling in Management, vol. 17 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 20 December 2022

Som Sekhar Bhattacharyya, Onkar Kulkarni and Ashutosh Mishra

The purpose of this research was to study the impacts of adoption of additive manufacturing (AM) for spare parts procurement, specifically in the context of supply chain…

Abstract

Purpose

The purpose of this research was to study the impacts of adoption of additive manufacturing (AM) for spare parts procurement, specifically in the context of supply chain resilience (SCR) especially regarding efficient spare parts inventory management. Furthermore, key narratives in the adoption of AM toward better SCR are explored.

Design/methodology/approach

In-depth interviews with semi-structured open-ended questionnaire were conducted to collect primary qualitative data from 24 supply chain management (SCM) experts. Respondents consisted of experts across various industries. The data were analyzed by thematic content analysis method.

Findings

The results indicated that AM could be a suitable tool to reduce dependence on original equipment manufacturers (OEMs) for spare parts procurement. Data analysis also revealed that AM adoption might lead to significant cost and lead time reduction. Designs protected as intellectual properties (IP), substantive post-processing requirements and material compatibility were revealed to be barriers in adoption.

Research limitations/implications

The impacts of utilizing AM for procurement of spare parts on the overall resilience of the supply chain were highlighted. Theoretical analysis of the findings was based on theoretical aspects of SCR. This was especially regarding efficient spare parts inventory management. The study results revealed the factors responsible adoption of the AM technology. A novel approach was undertaken to study the effect of AM adoption on “time-to-market” of newly launched products.

Practical implications

The research provided insights regarding practical applications of AM adoption in spare parts procurement. The study could be beneficial to the early adopters of AM across industries for making managerial decisions. Unfamiliarity of supply chain managers with the AM technology was believed to be a major reason to adopt the technology. The study provided essential inputs regarding challenges and alternate adoption strategies of AM. Thus, the research was believed to be of potential value for creating awareness among supply chain managers regarding AM technology.

Originality/value

The research provided new insights on the impact of AM adoption in the context of SCR toward efficient spare parts inventory management. Various limiting and facilitating factors specific to Indian context were also explored.

Details

Benchmarking: An International Journal, vol. 30 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 9 October 2017

Jouni Kauremaa and Jan Holmström

The purpose of this paper is to study the adoption and motivation to adopt global spare parts practices in autonomous units servicing the products of an original equipment…

Abstract

Purpose

The purpose of this paper is to study the adoption and motivation to adopt global spare parts practices in autonomous units servicing the products of an original equipment manufacturer.

Design/methodology/approach

The methodological approach is case study investigating the reasons for different levels of use and the perceptions regarding the benefits of a centralized supply chain management in four representative service units.

Findings

Autonomous spare part units often source locally because local suppliers are easy to work with in terms of purchasing processes and have no requirements for systematic planning and control of spare parts purchases and inventory management. However, increasing the share of centrally sourced and managed spare parts in the supply chain brings advantages in terms of lower total cost and higher availability. From the perspective of individual subunits engaged in providing product support services, this advantage of relying on a centrally managed spare parts supply chain of an original equipment manufacturer is not self-evident. Autonomous units frequently choose to continue sourcing spare parts from alternative sources, undermining the economies of scale attainable through the original equipment manufacturer’s supply chain. Higher levels of use are facilitated by back-office purchasing management at the unit level. The positive perceptions of centralized supply management in general – including the relationship between the supply unit and the service unit – further facilitate adoption, while local requirements and practices inhibit it.

Research limitations/implications

The study is a single case study and presents proposals requiring further study of the reasons for the observed differences in use of centralized supply chain management.

Practical implications

Centralized spare parts management service requires investment in back-office resources at the service unit level.

Originality/value

The research increases the practical relevance of existing research through an empirical investigation on the autonomous units’ motivations for and perceived benefits of centralized spare parts supply.

Details

Journal of Quality in Maintenance Engineering, vol. 23 no. 4
Type: Research Article
ISSN: 1355-2511

Keywords

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